Burleson Energy announces status of Truchard #2H horizontal development well
Thursday, Nov 22, 2012

Burleson Energy (BUR) provides the following update on the status of the Truchard #2 horizontal well (T2H) as at 21 November 2012 (Texas time).

During the past week, testing of frac sleeve 6 (the closest of the 6 sleeves to the horizontal section) occurred and is continuing. After sleeve 6 was isolated a test flow from frac slots 1 to 5 through production tubing was undertaken, however results were inconclusive with high water production still being recorded. The plan is to continue to flow the well (and produce gas and condensate to sales) for a few days to monitor the flows and while waiting to see if the earlier "spinner" survey data can be retrieved. This will be followed by a separate flow

test from sleeve 6.

Should the original spinner data not be obtained, a new spinner survey or alternative flow test, will be undertaken to identify the source of the water.

Technical information:

Two "spinner" surveys were run in an effort to determine which, if any, of the six frac slots have abnormally high water flow. In both cases the spinner tool failed, and the diagnostic information sought was not recorded. In spinner surveys, data is downloaded after the tool has been recovered from the wellbore, and just one of the surveys has provided any useful information to date. The spinner information may yet be recovered from the first failed spinner tool.

Based on limited data, it appeared that frac slot number 6 was producing excess quantities of water. It was considered possible that this zone has a connection "behind pipe" with known lower pressure, higher permeability water filled sands located above the T2H reservoir sands

due, perhaps, to a poor quality cement bond. Pressure data from various parts of the well bore supported this suggestion. Despite the results to date, a poor cement job is still a possible explanation for the water flows – a poor cement bond could extend past sleeve 6 and enable water ingress to sleeve 5 and beyond. Work and analysis continue.

Source: Burleson Energy

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