Terrace Energy Corp. (TZR) is pleased to provide the following operational update:
Cutlass – Eagle Ford Project
The Company has made significant progress on initiating its "Cutlass Project" in Dimmitt and LaSalle Counties, TX. Access roads, water wells and the drilling pad for the West #1A drilling location are completed. Pioneer Rig #28 has been moved onto the Company's leases and drilling has commenced on the first of its two planned horizontal wells. The well is currently at intermediate pipe depth of 7200' and the Company is preparing to run 9 5/8" casing. Plans are to drill a vertical pilot hole to evaluate the cretaceous section, then turn the well horizontal and drill approximately 4500 of lateral section in the Eagle Ford Formation at approximately 8000' TVD.
Construction of the East #1 drilling pad for the Company's second well in LaSalle County is approximately 75% complete. The Company plans to move Rig #28 to this drilling project immediately after concluding the drilling phase of the West #1A well. Access roads and other infrastructure built in conjunction with the West #1A will be used to service this location as well as further drilling on both the Dimmitt County and LaSalle County leases.
The Company owns a 30% working interest and 22.5% net revenue interest in the Cutlass Project. The project is situated within an area of extremely high activity for Eagle Ford Oil development. The Company's leases are completely surrounded by property under lease to Anadarko Petroleum as well as several other active Eagle Ford developers in the immediate vicinity. There are numerous active drilling rigs as well as completion, production and infrastructure construction projects actively underway in the immediate vicinity of the Company's leasehold.
The Cutlass Project has the potential to support up to 28 drilling locations targeting the Eagle Ford formation as well as the potential to develop additional cretaceous horizons, which are productive in the region.