Eternal Energy Corp. has completed a $1.1-million purchase of a 45% interest in the SW extension of the main body of the West Ranch Field in Jackson County, Texas. The Eternal acreage has reservoirs similar to those in the main body of the West Ranch Field, which has been a well-known, long-standing producing field.

Ryder-Scott Co., a Houston-based petroleum engineering consulting firm, has analyzed the potential for waterflooding of the Glasscock reservoir underlying the Eternal acreage. Ryder-Scott attributes 900,000 bbls of proven undeveloped reserves in the Glasscock reservoir (405,000 bbls net to Eternal’s 45% interest). EERG plans to invest an additional $0.9 million over the next 12 months to implement the Glasscock waterflood.

Waterflooding is a technique used to enhance recoveries of oil by injecting water into a select set of wells. Water is then forced through the reservoir rock, driving the crude oil toward a set of production wells from which the oil is withdrawn.

This is the first production acquisition by EERG. The acquired acreage currently produces approximately 70 BOPD and 50 mcf/day. According to a third-party engineering study, the interest of EERG has the potential, at current commodity prices, to generate $300,000 to $400,000 per month of cash during the 18-month peak production period following a successful waterflood.

In addition to the Glasscock reservoir, EERG now has rights to nine other potentially hydrocarbon-bearing reservoirs on the acquired acreage. A San Antonio-based registered petroleum engineering firm has estimated that there may be an additional 1-million BOE (450,000 net to EERG’s 45% interest) of proved undeveloped reserves in these nine other reservoirs.

PNP Petroleum, Inc. of San Antonio, Texas, holds the remaining 55% of the prospect and is the operator.