Burleson Energy Limited : Status of Truchard 2H horizontal development well

ABN 73 117 770 475

Burleson Energy Ltd

20 June 2012
Company Announcements
Australian Securities Exchange Limited
Level 4, 20 Bridge Street
Sydney NSW 2000
By electronic lodgement - 2 pages
ASX Code: BUR

Registered Office / Administration Level 6

9 Barrack Street

SYDNEY NSW 2000

Australia

Mailing Address

GPO Box 92

SYDNEY NSW 2001

Australia

Phone: +61 2 8252 6177

Facsimile: +61 2 8252 6178

www.burlesonenergyltd.com

Status of Truchard #2H horizontal development well

Burleson Energy Limited (ASX: BUR) advises that at 6am on 19 June 2012 (Texas time) the vertical section of the Truchard #2H horizontal development well reached a depth of 7,922 feet (~2,415m). The proposed total depth of the well is 11,500 feet (~3,500m). The well spudded on 8 June 2012.

About the Truchard #2H Well

The Truchard #2H horizontal development well is being drilled into the Heintschel gas-condensate field in Colorado County, Texas. Completion of the well for production will involve multi-staged fracture stimulation (fracs) along the horizontal (lateral) section within the Wilcox sandstone reservoir. Truchard #2H is located 785 metres from Burleson's established producing Truchard #1 well.
Truchard #2H is estimated to cost US$6.3m. BUR has an 83.5% working interest in the well. Independent analysis by Integrated Petroleum Consultants Inc. indicates that this well should have
cumulative production over a ten year period of 7 Bcf of liquids-rich gas and 200,000 barrels of condensate. At current commodity prices, this would deliver total revenue of U$53m over the term of
the well's life.
If successful, the results of Truchard #2H should pave the way for full development of the Heintschel gas-condensate field, which Burleson anticipates will be financed through a combination of project debt, farm-out and possible corporate joint venture.
Truchard #2H is being drilled in three distinct phases:
1. A near-vertical section will be drilled to 11,500 feet (~3,500m) under a turn-key (fixed price) contract totalling US$2.1m. This section will be electric logged to confirm reservoir quality and the gas condensate pay zones, and casing will be set in the hole.
2. A rig on a day rate contract (with top drive) will then be utilized to drill the horizontal 2,350 feet (700m) section, install and cement the production casing.
3. Following drilling of the horizontal section and demobilisation of the rig, a frac unit will be
employed to undertake up to six fracs in the horizontal section. The well will then be
brought on production and generate wet gas and condensate sales. This will be facilitated by the proximity to the well of hydrocarbon sales and distribution infrastructure.
A diagrammatic representation of Truchard #2H is as follows:
Burleson will continue to keep the market informed of the progress of the Truchard #2H well. For further information, please contact:
Contacts:
Michael Sandy, Managing Director
Alex Sundich, Executive Director & CFO
+61 2 8252 6177 info@burlesonenergyltd.com

Competent Person Statement:

The information in this report that relates to oil and gas exploration results and hydrocarbon resources is based on information verified by Mr Michael Sandy (BSc (Hons) Melbourne University), who is a petroleum geologist. Mr Sandy is a

Director of, and consultant to, the Company. Mr Sandy has more than 30 years of experience in this discipline and he

consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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