Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
29 March 2019
Curzon Energy Plc
("Curzon" or the "Company")
Texas Gas Project Update
Curzon Energy plc (LON:CZN) the London Stock Exchange listed oil and gas development company, pursuing a targeted strategy of upstream North American natural gas appraisal and development assets, announces further details on its proposed participation in Pared Energy's Texas Gas Project, first announced on 21 November 2018.
Highlights
· Curzon intends to participate alongside Pared Energy in the Texas Gas Project focused on properties covering an approximate 75,000 acres target fairway that provide access to the significant potential of the multi-stacked Claiborne Group formation
· Texas Gas Project offers multi-TCF potential with up to 1,000ft of over-pressured stacked pay should all horizons prove commercial, with expansion potential in Texas up to 250,000 acres
· Attractive drill-ready opportunity seeking to apply advanced drilling and completion technologies to known gas bearing horizons to enhance productivity and ultimate recovery
· Initial development plans include 1 vertical and 1 horizontal development well followed by a 3 to 5 well delineation program
· Expect gas sales can commence immediately upon well testing
· More than 2 BCF surplus pipeline and processing capacity exists in the region
· Access to both US & Mexican gas markets as well as a number of LNG processing and export plants under development across the east coast of Texas
· Board believes the Texas Gas Project complements existing exposure to coal bed methane assets in Oregon
Scott Kaintz, Chief Executive Officer comments:
"This exciting project positions Curzon Energy with a very attractive entry point to the Texas gas market with a drill-ready opportunity seeking to apply advanced drilling and completion technologies to known gas bearing horizons where techniques have little changed in many years. We also believe it offers a very complementary position to our existing CBM project in Oregon. We look forward to completing the negotiations around our participation with Pared in the Texas Gas Project over the coming weeks."
Texas Gas Project Overview
The Texas gas project constitutes a plan to develop a multi-TCF gas position targeting over a 1,000ft of multi-stacked over-pressured Claiborne Group formation along a 250-mile trend that constitutes a conventional gas fairway. The target is a laminated barrier bar sand complex not wholly unlike today's existing barrier bar islands that can be found along the Texas Gulf Coast.
The target trend along the Texas Gulf Coast has a cumulative historic production of 5 TCF of gas and 155 million barrels of oil since the early 1940s and can be considered a long-established gas basin. Many vertical wells have been drilled in the Claiborne formation over the years mostly by smaller, local operators.
The parties believe that the application of modern drilling, logging, completion & subsurface technologies would allow for significantly enhanced recoveries and allow assessment of the true productivity of the 1,000ft stacked play potential.
Historically the Claiborne Group formation has been drilled with vertical wells in Texas, however, the parties believe the opportunity exists to link up multiple sands targeted by historical verticals through the use of horizontal drilling, which has been utilized with success in similar formations.
The initial project location benefits from access to significant spare pipeline capacity with three large transmission lines running through the development acreage. An agreement is already in place for up to 40 million cubic feet per day of gas (equivalent) of surplus pipeline capacity for the initial wells.
The location of the initial drilling campaign puts the venture within easy access to both US & Mexican Markets as well as number of LNG processing and export plants under development across the east coast of Texas.
Staged Development Plan Envisaged
It is envisaged the Texas Gas Project will be developed in three phases with the first phase confirming proof of concept followed by two development stages.
o Phase 1: Drill and complete 1 x vertical + 1 x horizontal development wells, test, install facilities, produce and acquire data in Q2,2019; following successful results, start delineation efforts and add lease / lease options over an additional more than 15,000 acres.
o Phase 2: Drilling of 3 to 5 delineation wells in the trend; expand lease position by 50,000 to 75,000 acres
o Phase 3: 20 to 30 well horizontal infill drilling and expansion
Planned horizontal wells currently envisioned will be 4,000 to 10,000ft laterals with 30 to 75 frac stages.
Curzon Strategy
The board believes that the Texas Gas Project supports its strategy to increase Curzon's exposure to US-based, high-impact, onshore gas projects. The Company feels that natural gas will remain a critical transition fuel as the world's economies move towards a decarbonized future. With US gas production and demand expected to grow significantly, US exports of liquified natural gas ("LNG") are also expected to surge. Curzon seeks to offer direct investor exposure to these significant energy market developments.
For further information please contact:
Curzon Energy Plc |
+44 (0) 20 7747 9980 |
Scott Kaintz |
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www.curzonenergy.com |
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SP Angel Corporate Finance LLP |
+44 (0) 20 3470 0470 |
Richard Hail |
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Richard Redmayne |
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Optiva Securities Limited |
+44 (0) 20 3137 1902 |
Christian Dennis |
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