Marathon Oil Corporation is to start an accelerated drilling programme for the Sugarloaf project, an Eagle Ford shale liquids-rich producing field in Texas, US.
The proposed programme is anticipated to result in a significant increase in the number of wells to be drilled, targeting an increase in 1P reserves and production rates.
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Marathon Oil, the new operator of the Sugarloaf project, will begin the drilling programme during the first quarter of 2012. The programme will involve continuous drilling over the year using multiple rigs and includes the evaluation of optimum well spacing to optimise the overall development plan, capital allocation and value realisation of the field. The company is also considering the potential to appraise additional production horizons within the Sugarloaf project.
Empyrean Energy, which holds a 3% working interest in the project, said it views the operator’s approach to the project development positively in terms of the capacity for accelerating production and increasing the overall value of the asset. Empyrean CEO Tom Kelly said an accelerated rate of development will increase the internal rate of return for the project.
"There will be increased news flow as a result this year and there will be a number of initiatives that, if successful, will be very positive for the project as a whole," said Kelly.
According to Empyrean, 24 wells are in production at Sugarloaf within contiguous leases covering an area of 24,000 acres.
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By GlobalData
