Breitling Energy Corporation has completed phase on the Hankamer #1 in Newton County, Texas, operated by Seely Oil. At least two Yegua sections will be perforated and tested. Log analysis and sidewall cores indicate the presence of oil and natural gas in sands that display good porosity and permeability.
The Hankamer #1 well, in which the Company is participating, is located within the established Norian Yegua field. A well east of the Hankamer site produced an estimated 143,000 barrels of oil and approximately 100 million cubic feet of natural gas since early 2007 and is currently yielding approximately 30 barrels of oil per day. Less than a mile to the west, another yielded an estimated 505,000 barrels of oil and approximately 613 million cubic feet of gas during the same period, with current consistent projections of about 70 barrels of oil per day. Seely anticipates comparable production from the Hankamer #1.
"This extends our reach into this area of southeast Texas where the economics make sense in most market conditions. We are confident participating in our second prospect here in less than 90 days and continue to add revenue through the drill bit in a way that makes viable sense for our shareholders," said Chris Faulkner, Chairman and CEO of Breitling Energy.