South Texas

We acquired assets in the South Texas region in July 2013 focused on the Eagle Ford shale that included 120 producing wells and undeveloped acreage. As of June 30, 2015, our position in this region consists of 65,900 net acres located in Zavala, Dimmit and Frio Counties, Texas and is 80% held-by-production.

Primary targets in the region include the Eagle Ford shale and Buda. Our Eagle Ford shale acreage is located in the oil window at vertical depths ranging from 5,700 to 6,700 feet, averages 230 feet in gross thickness, and is being developed with horizontal laterals ranging from 5,000 to 9,000 feet. The Buda formation lies directly below the Eagle Ford shale with an average gross thickness of 135 feet. The Buda is a naturally fractured limestone and does not require fracture stimulation and is being developed with horizontal laterals up to 10,000 feet. Additional targets include the Austin Chalk and Pearsall formations

At June 30, 2015, we operated one drilling rig with plans to drill the Eagle Ford shale and Buda formations. Total net production from the region for the quarter ending June 30, 2015 was 7,167 barrels of oil per day from 238 producing wells.