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AWE adds to its Sugarloaf reserves and resources

AWE increases its total booked Reserves and Contingent Resources for the Sugarloaf area of mutual Interest
AWE adds to its Sugarloaf reserves and resources

AWE has announced that it had increased its total booked Reserves and Contingent Resources for the Sugarloaf area of mutual Interest (AMI), located in the Eagle Ford Shale and Austin Chalk unconventional plays in Texas, USA. AWE changes include 1P Reserves up 48% to 19.4 MMboe; 2P Reserves up 84% to 42.4 MMboe; 2P Reserves + 2C Resources up 22% to 64.9 MMboe; Company-wide 2P Reserves now greater than 100 MMboe. 

The upgrade followed an independent appraisal and report prepared by DeGolyer and MacNaughton on the Lower Eagle Ford shale and Austin Chalk zones and AWE’s initial assessment of the Contingent Resource for the Upper Eagle Ford zone (Figure 1).

The Sugarloaf AMI covers a number of leases totaling approximately 24,000 acres and AWE holds a 10% working interest (approximately 2400 net acres). 

“This increase in 2P Reserves of 19.3 MMboe represents an increase of 24% in total 2P Reserves for AWE to over 100 MMboe at 31 December 2014. It also represents close to four years of current production for the Company based on 2014-15 production guidance of 4.6 to 5.1 MMboe,” said Bruce Clement, managing director. “Our Sugarloaf asset lies within the sweet spot of acreage in the Eagle Ford Shale and Austin Chalk plays, and wells currently being drilled in the AMI continue to provide attractive investment opportunities, even at current lower oil prices.”

Image: Figure 1 Sugarloaf AMI/AWE

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