Texas-Gulf Coast

By OGJ editors
HOUSTON, Mar. 24 – Burleson Energy Ltd., Sydney, agreed to sell its Austin chalk wells and acreage in Burleson County, Tex., to Whittier Energy Co. for $1.344 million, retroactive to Jan. 1, 2010.

Burleson is following up on a late 2008 board decision to target conventional Gulf Coast reservoirs rather than the chalk. Lease rentals and renewal fees had begun to offset declining monthly production revenue.

Burleson has teamed with AKG Energy, Austin, and Marathon Oil in the Giddings and Champions areas of Burleson, Grimes, Montgomery, and Brazos counties and has at least 25 drilling targets including nine firm wells. Operator AKG is seeking a second rig.

The property sale will give Burleson Energy more cash to contribute to drilling the Woppa prospect later in 2010. Woppa is an Edwards and Sligo prospect on a 119-sq-mile 3D seismic survey in Colorado County, Tex., in which Burleson Energy has 38% working interest.