Burleson Energy Limited (ASX:BUR) Two Heintschel Wells To Be Fracced And Completed For Production

Sydney, Jan 19, 2011 AEST (ABN Newswire) - Burleson Energy Limited (ASX:BUR) is pleased to advise that preparations are underway for fracture stimulation (fraccing) of the two recently drilled wells on the Heintschel field: D Truchard #1 and Heintschel #2. The current schedule involves the wells being fracced back-to-back on or around 24/25 January. On success, both wells will be brought on production within days of the fracs.

Well detail

D.Truchard #1 , (BUR WI 38%, NRI 29.77%) The D.Truchard #1 well is located ~3km from the Heintschel # 1 gas condensate discovery. It was planned as an appraisal well in the Heintschel field in Colorado County, Texas. D.Truchard #1 was spudded in late November and drilled to a total depth of 12,000 feet (3658m) and gas shows were recorded while drilling the lower part of the hole.

Evaluation of the well including electric logging logs indicated that hydrocarbons are present in over 300 feet (~90 metres) of the target Prairie Bell Wilcox sands and that here are several zones of interest above and below the Prairie Bell. Log interpretation there are no gas/water contacts evident throughout the major reservoir sand package. Also, analysis suggests that the sands encountered in D.Truchard #1 are at a higher stratigraphic level than the Heintschel #1 well and also structurally higher than the pre drill prognosis. These are all positive indications for the performance of the well. A decision was made to complete the D.Truchard #1 well for production.

Heintschel # 2 (BUR WI 38%, NRI 29.77%) This appraisal/development well is located 0.37km from the Heintschel # 1 gas condensate discovery. The Heintschel #2 well was planned as an appraisal well targeting the main gas condensate sands encountered in the Heintschel #1 discovery well but in a structurally higher (updip) location. It was spudded in late December and drilled to a total depth of 11,900 feet (3627m) and gas shows were recorded while drilling the lower part of the hole. The main shows appear to correlate to gas condensate charged reservoir sands in the Heintschel #1 discovery well.

Electric logging of the Heintschel #2 well confirmed the presence of hydrocarbons in the target Prairie Bell sands as well as additional potential in sands located lower in the bore hole, in-line with pre-drill expectations. No gas-water contacts were encountered. A decision was made to complete the Heintschel #2 well for production.

Other activity:

Joann #1 well (BUR WI 39.4%, NRI 30.73%) This well was discovered in July 2010 and is also expected to be brought on production by the end of January. Prior to being shut-in awaiting connection to a sales pipeline, the well was tested. One of four prospective zones identified by logging in Joann #1 was perforated and flowed gas at 2.1 million cubic feet of gas per day and approximately 38 barrels of condensate per day.

Heintschel Field Interests:

- Burleson Energy 38.0%

- New Standard Energy (ASX:NSE) 32.5%

- AKG and Associates (AKG) 29.5%

Contact

Mike Sandy Managing Director Tel: +61-2-9450-2002 Fax: +61-2-9986-1753 Email: info@burlesonenergyltd.com http://www.burlesonenergyltd.com