VANCOUVER, Dec. 2, 2013 /CNW/ - Terrace Energy Corp. (the "Company" or "Terrace") (TSXV:TZR, OTCQX:TCRRF, FRANKFURT:2TR) is pleased to announce that the BlackBrush Terrace LP ("BBTLP") has successfully drilled and completed its first well (the "Chittim Heirs 2-H" well) in the Eagle Ford Shale formation on its 147,000 acre Maverick County Project.
Chittim Heirs 2-H was drilled to a total depth of 9,389 feet, including a 4,100 foot horizontal lateral section, in the Lower Eagle Ford Shale. The well was completed in 15 stages using hydrocarbon-based hydraulic fracturing fluids. During the first 15 days of flow-back testing, using 5 ½" casing, the well produced more than 11,500 barrels of oil, which is approximately 765 barrels of oil per day, and minor amounts of associated gas. There can be no assurance that the flow rate will stabilize at current levels over time.
This successful use of hydrocarbon-based fracturing fluids represents a significant advancement in the development of the Eagle Ford Shale in the "black oil" window, which is defined by low gas-oil ratios found in the northern extension of the formation. Previous attempts, by other industry participants to develop commercial production in the black oil window of the Eagle Ford Shale, were made using high volume water-based fracturing fluids. This technique has generally not been commercially successful, despite the formation's rock properties and hydrocarbon content, because the formation's shallow depth and lower reservoir pressure make it difficult to recover and unload the large volumes of water used. Testing results to date indicate excellent formation productivity and there is no evidence that water resides within the formation.
BBTLP has now logged over 150 feet of Lower Eagle Ford Shale in each of two wells including the previously announced Chittim 1-H well and has established commercial hydrocarbon production in two wells including the previously announced successful re-entry of the Chittim F-1H well. BBTLP now has three strong data sets ranging over 10 miles that exhibit similar petrophysical and hydrocarbon characteristics associated with some of the most productive regions within the Eagle Ford area of South Texas. These data sets will assist BBTLP in advancing the future exploration and development of the Eagle Ford Shale potential on its Maverick County Project.
Dave Gibbs, the Company's Chief Executive Officer commented: "We are very pleased with the results of the Chittim Heirs 2-H well to-date. Such results, together with the successful re-entry of the Chittim F-1H well, demonstrate we can successfully develop oil production from the Eagle Ford formation on the Maverick County Project. This creates a significant new opportunity for the Company."
BBTLP is currently finalizing drilling plans and budgets to move aggressively forward in the Eagle Ford Shale and evaluate other high potential formations including the Buda Limestone, the Pearsall Shale, Glenrose, and Georgetown formations on the Maverick County Project.
About the Maverick County Project
BBTLP has the right to acquire, through a farm out agreement, a 50% working interest in the Maverick County Project, which comprises certain oil and gas leases covering approximately 147,000 net mineral acres in South Texas. The acreage includes potential reserves in the newly emerging Pearsall Shale Trend as well as the Eagle Ford Shale, Buda Limestone and several other intervals of Cretaceous age formations which have been proven productive on a regional basis.
About Terrace Energy
Terrace is an oil & gas development stage company that is focused on
unconventional oil extraction in onshore areas of the United States. Terrace holds, indirectly, a 50% partnership interest in BBTLP as well as varying working interests, through its operating subsidiaries, in other projects in South Texas.
SOURCE Terrace Energy Corp.
