American Oil and Gas Reporter - October 2018 - 61

SpecialReport: The Eagle Ford and Austin Chalk
Karnes County position to EnerVest Ltd.,
the company still has 300,000 gross
(160,000 net) acres in both the Eagle
Ford and Austin Chalk.
"We knew there should be other areas
that look like this," adds Martin, who says
Blackbrush will drill about 50 wells this
year in the Eagle Ford and Austin Chalk.
He says Blackbrush has begun exploring leaseholds from the Mexican border to Florida. The Austin Chalk is
believed to run 650 miles from the Mexico-Texas border through central Louisiana
and Mississippi.
"We have taken a significant position
in Washington and Fayette counties, Tx.,
between San Antonio and Houston, which
have multiple zones," he offers. "We
drilled our first well there this year. It is
in the dry-gas/condensate window."
Washington County wells are producing
20 million-25 million cubic feet a day,
according to Martin.
Finding "Quiet" Areas
Martin says Blackbrush also has acquired a "nice position" in Louisiana,
where the Austin Chalk is being targeted
by a number of companies. He says there
are plenty of opportunities in the "quiet"
areas of the Chalk that have been overlooked previously as operators drilled in
the naturally fractured portions. Martin
says it is not usual for there to be a naturally fractured area, then a quiet area,
followed by another fractured area that
has been drilled previously.
Blackbrush also has a "gas leg" on
the southwestern extension of the Eagle
Ford in McMullen and LaSalle counties,
Tx., where wells are making 15 MMcf/d20 MMcf/d. Martin says that even with
pipeline constraints and low prices, the
gas wells along the Gulf Coast and in
South Texas are still very viable with
some of the best gas markets in the
United States.
Blackbrush Oil and Gas has drilled
laterals ranging from 4,500 feet to 9,000
feet. Average Eagle Ford laterals are
5,500 feet, Martin states.
"We revised our frac design and prop-

Blackbrush Oil & Gas began completing Austin
Chalk horizontals in
Karnes County, Tx., after
it lost the bottom of the
hole in a vertical Edwards
well and looked up hole.
After completing a short
lateral in the chalk that
made 350 barrels a day,
the company began a
program developing the
Upper and Lower Eagle
Ford intervals as well as
the Austin Chalk.

pant methodology, which have enhanced
our production greatly," he reveals. "We
are using more proppant, but we have
made a number of tweaks to try to drive
down costs."
Blackbrush also owns the exclusive
lower-48 rights to a waterless fracturing
technology that was patented by a Canadian company for using gelled propane
as the carrier fluid. Martin explains that
GASFRAC went bankrupt a few years
ago, allowing Blackbrush to buy the U.S.
license rights and equipment.
"We have found we can fracture the
wells using condensate and butane," he
reports. "It is very economical. We will
do testing on shallow Eagle Ford wells
that are not as overpressured. We believe
we can double the reserves. We will start
that program next year."
Martin says using condensate or butane
to fracture a well is cheaper than using
water because it saves the cost not only
of buying the water, but also disposing
of it. With this technology, he says, Blackbrush will be able to recapture the frac
fluid and sell it.
South Texas Expansion
On July 31, TPG Pace Energy Holdings
Corp. announced the completion of its
previously announced business combination with EnerVest's South Texas Division. In connection with the closing,
TPGE has changed its name to Magnolia

Oil & Gas Corporation. EnerVest will
serve as operator of Magnolia Oil & Gas'
properties.
Forming Magnolia created a largescale, pure-play South Texas operator
with top-tier Eagle Ford and Austin Chalk
assets with approximately 50,000 boe/d
of production, according to a second
quarter filing. Magnolia says it acquired
EnerVest's 360,000 total net acres in
South Texas, which consists of approximately 14,000 net acres in one of the
most prolific sections of Karnes County
and 345,000 net acres in the emerging,
high-growth-potential Giddings Field.
The acreage position is almost entirely
held by production (62 percent oil and
78 percent liquids).
"In creating Magnolia, we have a
unique opportunity to build a new company anchored by what we consider to
be some of the highest quality oil-producing acres in the country," CEO Steve
Chazen said in making the announcement.
"Magnolia's acreage in Karnes County
has some of the best economics in the
United States and, when coupled with
the upside of the Giddings Field, is a
great fit with our criteria."
The Karnes County acreage was acquired in 2016 by EnerVest from Blackbrush, Gulftex Energy and Alta Mesa
Resources for $1.3 billion.
The Austin Chalk in the Giddings area
is the primary target for Magnolia, which
OCTOBER 2018 61

American Oil and Gas Reporter - October 2018

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