The Pearsall Shale formation is an emerging formation in the Maverick Basin of South Texas. It is composed of organic shale, limestone, and silica, making it similar in make up to the Eagle Ford Shale. It’s deeper and older than the Eagle Ford, but was also created during the Cretaceous Period when much of Texas was covered by a shallow sea. The Pearsall Shale has shown huge potential and, as of 2012, only a few wells had been drilled in the shale outside of the Maverick Basin. Early test wells have shown there is potential in this area.
What Area does the Pearshall Cover?
The Pearsall Shale covers Atascosa, Frio, LaSalle and Zavala counties, among others, in South Texas. It is located near the Texas-Mexico border in the Maverick Basin. The Pearsall Shale is found below the Eagle Ford between 7,000 and 12,000 ft. with a thickness of 600 to 900 ft.
Its location below the Eagle Ford allows for companies with leases for Eagle Ford, without depth severance clauses, to drill into the Pearsall Shale. The stacked production zones in a single area can provide huge economic savings to companies. Oil can be produced from many different rock units using the same drill pad, access roads, oil collection pipes, etc. All of this drilling and production in the same location can also make pipelines more profitable all around.
Who’s Drilling Oil and Gas Wells in the Pearsall Shale?
As of Q4 2014, the Pearsall Shale is still emerging, but many companies established records drilling there. These include Cabot Oil & Gas Corporation, Carrizo Oil & Gas Inc., Goodrich Petroleum Corp., Marathon Oil Corporation, Newfield Exploration Co., and Penn Virginia Corporation.
Have you been approached by one of these companies, or another, about investing in wells in this area? Download our free Insider’s Guide and Legit Meter to evaluate the opportunity.
Methods of Drilling in the Pearsall Shale
Horizontal Drilling and water fracturing are common methods used in the area, with the majority of new well permits being issued for horizontal drilling. Vertical drilling is being used, but that technique is a minority and is declining here just like in many other areas.
Investing in the Pearsall Shale
The Pearsall Shale is still being developed, but companies are drilling new wells and discovering more all the time. With new methods and technologies being developed rapidly, the oil and gas industry is constantly finding zones above, below, and around the initial drill targets. This formation has the potential to extend the U.S oil boom much farther into the future than many investors may realize. Any opportunities to invest in Pearsall Shale Oil Wells should be considered after doing your homework and qualifying the company and investment proposal.