South Texas (Buda/Eagle Ford)
As of December 31, 2016, our South Texas region included approximately 150,300 gross (76,800 net) acres, proven reserves of 32.5 Bcfe, and 260 gross (135.5 net) producing wells. We believe approximately 16,800 gross (7,900 net) acres to be prospective for the Buda and Eagle Ford Shale plays. While we had success drilling in the Buda formation in Zavala and Dimmit counties in 2014, and while core analysis indicates the viability of the Eagle Ford formation, no drilling activity was conducted in this area in 2015 and 2016 due to the reduction in our capital expenditure programs in response to the commodity price environment. We do not anticipate devoting any drilling capital to this area in 2017.
Our estimated net proven Buda/Eagle Ford reserves in this area were 10.9 Bcfe, comprised of 79% liquids, with 31 gross (15.8 net) producing wells, as of December 31, 2016.
South Texas (Elm Hill Project)
As of December 31, 2016, we held approximately 51,000 gross acres (24,600 net) in Fayette, Gonzales, Caldwell and Bastrop counties, Texas. Our last activity in this area was in 2014 and 2015, when we drilled five wells with mixed results. There was no drilling activity in 2016 and the Company and its partner have no plans to further test this area. As a result, we recognized an impairment expense of $6.8 million for the year ended December 31, 2016.
The remaining 82,500 gross (44,300 net) acres in our South Texas region are located in our conventional fields that produce primarily from the Wilcox, Frio, and Vicksburg sands. Our estimated net proved conventional reserves in this region were 21.5 Bcfe, comprised of 72% gas, with 224 gross (117.5 net) producing wells, as of December 31, 2016.
South Texas Metrics
|Proved Reserves @ 12/31/16||
|% Natural Gas||
|Productive Wells (gross/net)||
260 / 135.5
|Developed Acreage (gross/net)||
90,197 / 45,265
|Undeveloped Acreage (gross/net)||
60,082 / 31,565
|2016 Average Daily Production (Mmcfe)||7.5|
|Key Operated Field(s):|
|Pearsall, Leona Rivers, SW Speaks, Cage Ranch, North Bob West, Fashing, Zavala, Leona River, Escobas, Gimme Putt, Magnet Withers, Elm Hill|
|Buda, Eagle Ford, Lower and Middle Wilcox, Frio-Vicksburg, Cretaceous Sands, Navarro, Austin Chalk|