Houston-based Leor Energy LP, which is partnering with EnCana Corp. on some exploration prospects in the Bossier Trend of Robertson County, TX, said Thursday that the gross natural gas production from its Amoruso Field has reached 200 MMcf/d "and can now be comfortably counted as one of the top five largest onshore discoveries in the United States in the past decade."
Leor said production is coming from "only 19 wells" in the play, but ultimately, there is expected to be "hundreds of wells" in the leasehold. Three wells are in the process of being completed, and a total of eight wells now are being drilled.
"Based on the geology, we've always expected great things from the Amoruso Field," said Leor CEO Guma Aguiar. "But we're still in awe of the outstanding production numbers we are seeing. These sands are more impressive than anything seen onshore in a very long time."
He said the Amoruso prospect was only begun a year and a half ago. Contributing to the daily numbers are the output rates of two of Leor's recent completions, which are producing 63 MMcf/d and 51 MMcf/d.
"We're still in the early stages of development," said Aguiar. "With the completion in the third quarter of this year of a 3-D survey currently under way across our Robertson County acreage position and the addition of some new wells, we look forward to ramping up production."
In July 2005, Leor and EnCana teamed up to begin exploring and developing the Amoruso Field, and last year EnCana bought into the Leor leasehold with the purchase of 7,400 net ares for $242.9 million in cash and 4,039 net acres adjacent to Leor's existing field (see Daily GPI, July 31, 2006). EnCana is operator of the Amoruso, which is contiguous to, and shares similar characteristics with the Savell Field, a major gas reservoir producing about 200 MMcf/d.
Leor management controls 83% of the privately held company. A subsidiary group of Merrill Lynch & Co. Inc. in January invested $150 million in Leor, giving it an undisclosed stake (see Daily GPI, Jan. 26). The equity placement with Merrill Lynch PCG followed the closing of a $150 million three-year revolving credit facility with JPMorgan Chase Bank NA. Goldman Sachs also is an investor.
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