EMERALD BAY ENERGY ANNOUNCES DUVAL COUNTY (DCRC) PROJECT AND PROVIDES UPDATE ON SOUTH TEXAS OPERATIONS
Emerald Bay Energy Inc. (TSX Venture: EBY OTC: EMBYF) (the “Company” or “Emerald Bay”) is pleased to provide an update on recent acquisitions and operations in South Texas. These operations follow Emerald Bay’s over-all strategy of consistent growth through acquisition of existing production, drilling, and production optimization across multiple projects.
The Duval County Ranch Company (DCRC) project is the latest acquisition the Company has made with HugoCellR and CWS Energy Resources as partners. The project consists of 5 leases totaling 896 acres in the Piedre Lumbre and Petrox-Government Wells fields, first discovered by Humble Oil in Duval County Texas. An oil major still owns the surface and deeper mineral rights on the lands, while the Emerald Bay and partners acquisition pertains to the shallow depths just below the Mirando Sand (approx. 2,600’) to the surface. Initial development will take place on the 320 acre “E” lease. In addition to the cash flow generated to Emerald Bay for being the operator, it is estimated that this lease has the potential for up to 500 bopd to be added, (net 50 bopd to EBY after payout) in future drilling. The first four (4) wells have been surveyed, staked, and a rig secured.
The previously announced Leona River project acquisition, with partner Cotulla Energy Resources Ltd., consists of 5 leases totaling 490 acres focusing on the Escondido and Olmos formations. Current production volume from the producing wells is approximately 100 Mcf per day (15 boepd). In addition to the cash flow generated by being the operator, and after the current optimization program is complete, the company estimates the 5 wells have the potential to add up to 1 MMcf per day (net 37.5 boepd to EBY). Optimization operations are now underway.
Guadalupe County (Wooden Horse)
With the recent electrical infrastructure upgrades complete, comparing the first 7 months of 2019 to 2018, the Company has increased production 163%. The Austin Chalk production comes from a water drive system with low decline rates. Current production rates over the past 90 days have averaged 25 bopd (net 12.5 to EBY). With our 3D seismic interpretation and well control, we are poised to move to a development phase of drilling operations. This will begin with the drilling and completion of Huebinger E1. We currently have identified up to 7 vertical wells and the horizontal re-entry of Kuhn 1H for future development.
Guadalupe County (Isabella)
The re-entry of Isabella #2 remains on the development schedule. While completion efforts in the Navarro were unsuccessful, the Company, and partners, are optimistic it can achieve commercial success in either the Buda, Eagle Ford, or Basal Austin Chalk formations.
Guadalupe County (La Vernia)
The Company is currently in the final stages of negotiation to acquire additional lands with existing production in the LaVernia field. Emerald Bay, and partner HugoCellR, plan to expand their current land position and drilling inventory at LaVernia.
Atascosa, Bexar, and Medina County (Somerset and Taylor-Ina Fields)
Production optimization in the Company’s Production Resources Inc. (PRI) property, has fueled the growth in Somerset and Taylor-Ina. We have increased our optimization efforts by dedicating service rig #1 to Taylor-Ina and rig #2 to Somerset for work-overs. As a result of this effort, production volume during Q2 increased 17% (year over year) to 53 bopd (40 bopd net to EBY) and lease operating expenses decreased by 20%.
ABOUT EMERALD BAY
Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) is an energy company with oil producing properties in Southwest Texas as well as non-operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadalupe, Texas, where the Company currently now owns a 50.00% working interest those projects. Additionally, the Company owns and operates various working interests in the HugoCellR, Cotulla, and MarPat partnerships. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
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For further information, please contact: Emerald Bay President and CEO, Shelby D. Beattie, or CFO, Mike Rice, (403) 262-6000, firstname.lastname@example.org, www.ebyinc.com
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