Black Lion Resources has acquired an interest in four properties in the Bend Arch-Ft Worth Basin, a major petroleum producing geological system in north and central Texas. The area encompasses 14 counties with hundreds of producing vertical and horizontal wells. The producing formations are of Pennsylvanian to Mississippian age and consist of sandstones, carbonates, conglomerates and shales (“Barnett Shale”). The Barnett Shale has become a major gas producer in the area and two of its zones are deemed to be continuous accumulations. Tarrant and Johnson Counties are considered its core area, with Denton Co. in Tier 1 and Ellis Co. bordering Johnson Co.
The four properties are situated north and south of Fort Worth and encompass 48 acres in Tarrant Co., 202 acres in Johnson Co., 104 acres in Denton Co. and 71 acres in Ellis Co. Black Lion will acquire a 75% Net Revenue Interest in all the leases. The acreage has gas potential in the Barnett Shale and conventional oil and gas in shallower zones.
The Tarrant Co. property has a suspended gas well, the Great Southwest Parkway well #1H, which was drilled by Chesapeake Energy Inc. in 2009 and tested ~2 MMCFD.
The Johnson Co. property is in a very active producing area, surrounded by numerous gas producing wells operated by EOG Inc. and Devon Energy Inc. Two Barnett Shale wells were drilled on the acreage Black Lion is acquiring, which could be re-entered and re-completed with new frack technology. There is enough acreage for one new horizontal well and two probable inflll locations.
The Denton Co. property is in an area, which has seen oil production from shallow sandstone reservoirs since the 1940s. Oil production is ongoing today, producing from the Strawn sand. Two oil wells were drilled on the acreage, which have been plugged. Potentially, two Barnett Shale wells could be drilled on the acreage with a probable two infill locations, and the oil potential can be exploited.
The Forward Plan envisages to develop the properties in a phased programme. In Phase 1 it is intended to bring the Great Southwest Parkway well in Tarrant Co. into production. In Phase 2 Black Lion intends to aggregate additional working interests in the Johnson Co. property and to develop it and the Denton Co. acreage in co-operation with reputable operators who are active in the surrounding areas