It’s rare these days to hear of major successful oil extractions that don’t depend on hydraulic fracturing. But One Texas company is not only finding a bit of success without the popular production method, it is accomplishing extraction in an unlikely area of East Texas.
The exploration and production company Chestnut Explorations, Inc. claims to have found a great return on a small effort. In a recent article from the Dallas Business Journal, CEO, owner and founder of Chestnut Exploration Mark Plummer stated that the initial returns from his latest Anderson County well looked promising. The company has only developed two wells but according to Plummer, the latest well has the potential to produceroughly 640 barrels per day.
Most of the time, energy operations in East Texas take a back seat to the famous fields of Eagle Ford or the oil and natural gas rich shale plays of West Texas. The area of operation right outside Palestine, Texas isn’t really a part of a shale play. But, as Plummer points out, his horizontal well that passes through Subclarksville sandstone has benefits when the operation is on a small scale.
“If I can drill a sandstone that can make 600 barrels a day that I don’t have to frack, not having to frack a 4,000-foot lateral saves you a couple million dollars,” Plummer told the Business Journal. “We got all the data from this well and it looks spectacular.”
Chestnut has 7,400 acres leased in Anderson County and plans to drill a second well before the end of the year. Initially, the company had budgeted for up to six wells but scaled back when the price of crude oil plummeted. With wells required to hold onto leasing agreements, Plummer said he had to be “unbelievably selective” when picking a drill site because the economics have to work.