Terrace currently has two active projects, the Olmos tight sandstone development project and the Maverick County multiple objective exploration focused project, which are located in the oil window of the South Texas Cretaceous play.
Maverick County – Multiple Prospective Oil Bearing Horizons Including Eagle Ford Shale
In April 2013, BlackBrush Terrace LP (50% owned by Terrace Energy), acquired the right to earn a 50% operated WI in 147,000 gross acres from a major oil company for a total of 36,750 net mineral acres.
Attractive Asset with Exploration Focus:
The Chittim Ranch acreage position in Maverick County has multiple prospective horizons including all of the active South Texas Cretaceous oil-bearing formations. Analysis of 300 sq miles of proprietary 3D seismic data and data from previously drilled vertical wells indicate strong potential in the Pearsall Shale, Eagle Ford Shale, Buda, Glen Rose and Georgetown formations. Two Eagle Ford wells were developed by the partnership and are currently producing. In addition, we have drilled five evaluation wells on the acreage to evaluate multiple prospective horizons on various locations within the ranch.
Olmos Tight Sandstone Project
Terrace holds working interests ranging from 15% to 33% in approximately 18,914 gross acres for a total of 3,875 net acres located in McMullen and LaSalle Counties, Texas. The project is a southwesterly extension of the prolific AWP Field which has produced nearly 500 MMBOE from the Olmos Sandstone since its discovery in the early 1980’s. The Company has drilled 19 horizontal wells and one vertical in the STS Olmos Project and has identified approximately 122 gross total drilling locations on this acreage in the Olmos formation.
During 2014 Terrace participated in the drilling of a well northwest of the AWP field in McMullen County, Texas and earned a 33.34% interest in certain leases covering 199 gross acres.
Terrace is evaluating multiple Olmos Sandstone acreage acquisition opportunities in the area. During 2015 Terrace added approximately 8800 acres of expansion acreage to the southeast of the current leasehold, at a working interest of 50% for an additional approximate 4400 net acres. This expansion leasehold lies in very attractive location with respect to the ongoing development of the STS Olmos project.