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Burleson Energy announces status of the T2H horizontal development well

Friday, Nov 30, 2012

Burleson Energy (BUR) provides the following update on the status of the Truchard #2 horizontal well (T2H) as at 28 November 2012 (Texas time).

During the past week, a test flow from frac slots 1 to 5 through production tubing was continuing to monitor the production. The gas and condensate is being sent to sales. This will be followed by a separate flow test from sleeve 6.

The original spinner data could not be obtained, so it is planned to run a new spinner survey or alternative flow test, to attempt to identify the source of the water.Technical information: Two “spinner” surveys were run in an effort to determine which, if any, of the six frac slots have abnormally high water flow. In both cases the spinner tool failed, with only limited data made available. Based on that limited data, it appeared that frac slot number 6 was producing excess quantities of water. It was considered possible that this zone has a connection “behind pipe” with known lower pressure, higher permeability water filled sands located above the T2H reservoir sands due, perhaps, to a poor quality cement bond. Pressure data from various parts of the well bore supported this suggestion. Despite the results to date, a poor cement job is still a possible explanation for the water flows – a poor cement bond could extend past sleeve 6 and enable water ingress to sleeve 5 and beyond.

A new spinner, or similar, survey should answer the current questions being posed by the production results to date so work and analysis continue.

Due to the ongoing testing, we will discontinue the practice of a weekly status update, but will, of course, update the market upon receipt of material information.

Source: Burleson Energy

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