Eagle Ford – Operated Assets
In June of 2018, SDR acquired an operated asset in the prolific Karnes Trough black-oil trend of the Eagle Ford Shale in south Texas. The 100% working interest position is producing 80% oil with additional locations for future development. This acquisition marks SDR’s entrance into unconventional operations in the Lower 48 and the beginning of a strategic growth strategy focused in the Eagle Ford Shale. SDR is actively seeking high-quality operated positions in the black-oil trend of this unconventional play.
The Eagle Ford Shale is a world-class unconventional play trending across Texas from the Mexican border into East Texas, roughly 50 miles wide and 400 miles long, with an average thickness of nearly 200 feet. The shale play is of significant importance due to its capability of producing both oil, natural gas and natural-gas liquids. It is Cretaceous in age resting between the Austin Chalk and the Buda Limestone Formations at depths between 4,000 and 12,000 feet across the trend. It is the source rock for the Austin Chalk and the giant East Texas Field. The high percentage of carbonate, upwards to 70% in south Texas, makes it more brittle and therefore more conducive to effective hydraulic fracturing and efficient recovery.
Marcellus – Non-Operated Assets
In 2010 SDR entered into a joint venture with the acquisition of non-operated working interests in the Marcellus Shale resource play in the Appalachian Basin of western Pennsylvania. Our primary area of development is located in the “liquids-rich” area in Butler, Beaver and Lawrence Counties. At the present time SDR owns interests in over 200 producing wells located in the project areas with ongoing activity in the liquids-rich area.
The Marcellus formation is described as an organic-rich black shale known to be the source rock for many of the conventional oil and gas reservoirs in the Appalachian basin. With recent advances in horizontal drilling and fracture stimulation technology, it has become the largest producer of natural gas in the domestic U.S. and one of the largest deposits of natural gas in the world. SDR has a favorable position in the liquids-rich window of the Marcellus and has successfully tested the Upper Devonian formation, which lies just above, and is very similar in composition to the Marcellus. This is the primary focus of the current drilling activities with additional potential in the dry gas regions. The Utica/Point Pleasant formation is a deeper dry gas accumulation that has proven to be productive and adds a significant number of drilling opportunities to an inventory that exceeds 1,500 locations.