This project will focus on four leases—the Earnest, Carrico, Beeler and Buerger—which cover approximately 5,000 acres and are generally contiguous. The leases are located approximately 14 miles northwest of Dilley, Texas and are located in the Pearsall Austin Chalk Field. This field was originally discovered in the 1930’s, is part of a major oil-producing trend that stretches from near the Texas/Mexico border to the Texas/Louisiana Border, and has produced hundreds of millions of barrels of oil.In the mid to late 1970’s, the primary development approach for the Pearsall Field was to acidize the chalk zone and then apply a large, sand fracturing process. In 1986, Oryx Energy began experimenting with horizontal drilling. This kicked off the next round of development and launched the horizontal drilling technology revolution.
Ladd Petroleum Company vertically drilled the subject leases in the late 1970’s. In the early 1990’s, Citation Oil & Gas drilled seven horizontal wells. Initial well production, from both vertical wells and horizontal wells, ranged from 13 to 765 BOPD and up to 200 BWPD with the lower production rates primarily associated with the early vertical wellbores. Combined, the wells have produced over 2.9 MMBO and 9.0MMBW. 
The leases include 16 vertical wells, 7 horizontal wells, and substantial infrastructure. These wells have been neglected for over three years and it is estimated that as much as 1,500,000 barrels of oil remains to be produced in all zones from these existing wells. Initially, the development phase will consist entirely of reworking wells and implementing an operations program designed to return the existing well production to historic ranges.EAGLEFORD SHALE:These leases are in the northern edge of the Eagleford Shale oil window.  Eagleford shale wells have been drilled to the north, south and west of this location.BUDA:Drilling continues in the Buda limestone to both the west and east.PEARSALL SHALE:Cabot, Marathon and others continue to evaluate the Pearsall Shale for it potential.

PNP Petroleum I L.P.