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 attractive economics at approximately 50% of the costs of a similar-sized traditional hydraulic drilling program. On January 31st, the drilling reached its targeted location in the Austin Chalk Formation. On February 13th, the drilling had reached its first milestone, which initiated a contractual vesting of asset assignments with the successful drilling of a minimum lateral distance of 2500 feet. By February 14th, the joint venture reached its second milestone, with the conclusion of drilling its lateral with a full vertical section distance of 4046 feet. They are currently working toward setting a production packer and production tubing to complete the well as an open hole Austin Chalk producer. The well was drilled successfully using managed pressure drilling techniques, allowing for visibility of the productive intervals throughout the drilling process. Randy May, chairman and CEO of Ecoark commented, “We are extremely pleased with the results of this project, which reflects the first directional drill that 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 our internal project team.” Ecoark plans to separately announce the actual crude oil and natural gas production generated from the initial days of production. Per terms of the joint venture agreement, Ecoark will operate the well through White River Operating LLC, and will own 90% of the working interests in the gas and oil well until the company has recouped the entirety of its initial capital outlay, after which it will own a 70% working interest with the remaining working interests to be owned at an undisclosed ratio 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 Formation with an estimated spud date late in the second quarter of this year. The geological team has already identified additional leasehold locations with similar 3D seismic survey data results to the first drill area. DIR 302-684-3197 FAX: 302-384-0643 142 Broadkill Rd. • Milton, DE 19968 www.atlantic-screen.com email: atlantic@ce.net 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
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