WorldWide Drilling Resource

25 SEPTEMBER 2021 WorldWide Drilling Resource ® Directional Drilling in Louisiana’s Austin Chalk Formation Adapted from Information by Ecoark Holdings, Inc. Ecoark, a diversified holding company, engages in gas and oil exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Texas, Louisiana, and Mississippi. In October 2020, Ecoark announced a joint drilling venture with Blackbrush Oil & Gas, L.P. and GeoTerre, LLC. The planning phase for its first major drilling project was completed during the last quarter of 2020, while the company simultaneously acquired additional mineral lease rights contiguous to the originally acquired leasehold and 3D seismic survey results in Avoyelles Parish, Louisiana. Following the planning program, they commenced a unique drilling project on January 15, 2021, focused on the drilling of a directional oil well in a targeted portion of the Austin Chalk Formation. Based on extensive survey and planning work, combined with the completion techniques employed, the joint venture anticipates achieving attractiv e economics at approximately 50% of the costs of a similar-sized traditional hydrauli c drilling program. On January 31st, the drilling reached its targeted location in the Austin Chal k Formation. On February 13th, the drilling had reached its first milestone, which initiate d a contractual vesting of asset assignments with the successful drilling of a minimu m lateral distance of 2500 feet. By February 14th, the joint venture reached its secon d milestone, with the conclusion of drilling its lateral with a full vertical section distanc e of 4046 feet. They are currently working toward setting a production packer an d production tubing to complete the well as an open hole Austin Chalk producer. Th e well was drilled successfully using managed pressure drilling techniques, allowin g for visibility of the productive intervals throughout the drilling process. Randy May, chairman and CEO of Ecoark commented, “We are extremel y pleased with the results of this project, which reflects the first directional drill tha t our subsidiary White River Operating LLC has been the operator of record.” He added , “We appreciate and value the highly technical expertise that both of our [joint venture ] partners brought to the project, as well as the hard work and dedication of ou r internal project team.” Ecoark plans to separately announce the actual crude oil and natural gas produc - tion generated from the initial days of production. Per terms of the joint ventur e agreement, Ecoark will operate the well through White River Operating LLC, an d will own 90% of the working interests in the gas and oil well until the company ha s recouped the entirety of its initial capital outlay, after which it will own a 70% workin g interest with the remaining working interests to be owned at an undisclosed rati o by the other partners. The joint venture is now expected to commence planning and execution of a second drilling project on the same leasehold within the Austin Chalk Formatio n with an estimated spud date late in the second quarter of this year. The geologica l team has already identified additional leasehold locations with similar 3D seismi c survey data results to the first drill area. DIR 302-684-3197 FAX: 302-384-0643 142 Broadkill Rd. • Milton, DE 19968 email: Manufacturers of Slotted & Perforated Pipe ranging from ½” to 24” diameter Atlantic Screen & Mfg., Inc. • Well Rehab. Products • Manholes • Bentonite • Filter Sock • Inline Chemical Mixers • Sampling Bailers • Clear PVC Pipe • Locking Caps