Texas South Energy provides update on Wilinda project

6/13/2019

HOUSTON -- Texas South Energy, Inc., has announced that it has temporarily discontinued flowback operations on the TXSO Richter 1H well in Wilson County. The Richter 1H well was drilled to 9,447 ft, with approximately a 4,100-ft horizontal lateral. The well was designed to develop the matrix porosity section near the top of the Austin Chalk formation and was completed and fractured in late 2018.

The flowback operations revealed that the well evidently fractured down a previously concealed fault plane into the underlying Edwards formation, which is very permeable but predominantly water bearing at this location. This faulting, which can now be identified with seismic and geo-steering evidence, will be avoided by a 500-ft offset from future frac stages. Despite attempts to isolate the frac stages suspected as the source of the extraneous water production, the well continued to demonstrate connection to the deeper zone. Previous vertical Austin Chalk producing wells in and near the Richter Unit have recovered over 300,000 bbl of oil from the Chalk formation at this site and are still oil productive from that zone. Production data and discussions with other operators in adjoining Austin Chalk completions in Karnes County have revealed similar results in five or six completions out of more than 90 wells in that area. Texas South is the Operator of the Richter Unit well and owns a 25% working interest (approximately 19.75% net revenue interest) in the unit and well.

The TXSO Richter Unit 1H is the first horizontal well drilled and completed in the Wilinda area by Texas South. Together with its partners, the Company currently has leases and commitments on over 4,000 acres in the Richter Unit area. In addition, the Company has identified a specific area in the Wilinda project with enhanced natural fracturing that appears very prospective for open-hole horizontal completion techniques. The Company plans to continue acquiring acreage along the play and drill additional matrix porosity and naturally fractured Austin Chalk wells later this year.

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