Eureka Energy Limited (“Eureka”) is an oil & gas exploration and development company listed on the Australian Securities Exchange (“ASX”). Eureka is solely focused on development of its interest in the Sugarkane Gas and Condensate Field.
Eureka holds interests in the Sugarloaf Area of Mutual Interest (“AMI”) which is located centrally within the Sugarkane Gas & Condensate Field which is onshore in southeast Texas, USA.
The Sugarloaf AMI comprises of contiguous leases covering approximately 23,500 acres and provides the Company with an exceptional opportunity to participate in the development of a potential multi trillion cubic feet equivalent (“TCFE”) gas and, importantly, condensate rich resource.
Eureka owns a 6.25% working interest in the Sugarloaf AMI, an exciting new Austin Chalk and Eagle Ford Shale discovery. Hilcorp Energy, one of the largest privately owned E & P companies in the USA, farmed into the Sugarloaf AMI and became Operator on 1 February 2010. As part of the farmin obligations, Hilcorp are carrying 100% of Eureka’s costs for the drilling, completion, fracture stimulation and tie in of 3 new horizontal wells and the fracture stimulation of three existing wells (Farm-in operations completed in June 2010).
The production results achieved to date within the Sugarloaf AMI and regionally within the Eagle Ford Shale trend support Eureka’s contention that the Sugarloaf acreage is amongst the best in what the industry believes to be the most economic shale play in the USA today.
“The Eagle Ford shale is galloping into the ranks of the nation’s top resource plays, due to rich gas, impressive flows and remarkably consistent results.....In August 2009 there were 11 rigs operating. By February 2010 some 45 rigs reported operating across the trend.”
(Source: Oil & Gas Investor March 2010)
