Chittim Ranch Lease

The Chittim “A” lease is 13,000 acres situated 12 miles east of Eagle Pass, Texas.  It is at the geologic peak in an area known as the Chittim Arch, Maverick Basin.  The discovery well was drilled in 1927, started producing in 1930 and still produces on Escopeta’s lease today.  In the 1980’s a few independents drilled straight holes, then in the early 2000’s, TXCO drilled over 30 horizontal wells primarily in the lower Glen Rose section.  In the late 2,000’s, TXCO filed bankruptcy, Newfield and Anadarko bought them out for $ 375 million dollars, and the property was left as a “non-core” asset with no remedial work being done for over 10 years.

Escopeta completed the acquisition of over 30 producing oil and gas wells on the Chittim Ranch and swiftly reviewed for title work, leases, product purchase contracts, ongoing operation contracts, and engineering reports from previous operators. After review a limited re-work program of small workovers was implemented resulting in doubling of  production net cash flow was more than doubled.

ESCO Oil Operating Company Chittim Lease

Lease History

1927:  1st well drilled, #3, still produces 30 mcfgpd

Mid 50’s:  Some Chalk exploration and production until the early 80’s; handful of vertical Glen Rose Pay Zone wells drilled, no dry holes, average 500 mmcfg/well

Late 90’s:  TXCO has over 175,000 Chittim acres under lease including our leases. They drill 3 vertical wells, 29 horizontal wells to the “C” zone off mud logs, no pilot holes, produce around 30 bcfg.

2009:  Newfield and Anadarko pay TXCO $ 350 million for all of the leases. They discovered the Buda and Chalk with oil pay zones and later sell to Halcon package sale.

2012: Wagner buys Halcon, once again leases included as a non-core asset. Wagner does nothing on the leases except produce large amounts of Natural Gas from the Glen Rose pay zone.

2017:   ESCO OIL buys the lease from Wagner Oil. 

2018 – 2019: ESCO spend over $4 mil on upgrading the facilities getting ready to continue drilling new wells with $60 million in funding from a European fund.  In March 2020, weeks before work is set to begin COVID hits putting a halt to essentially all oil & gas funding.

2020:  That leads us to where we are at today, which is a GREAT opportunity to get into a project, if not for this terrible COVID, we would have never had a shot at this!!!

Where the project is located

Chittim Ranch, Maverick County, Texas

Recent Test 
Middle and Upper Glen Rose consists of over 1,000’ of section never tested with over 100’ of potential fractured pay.  We tested the southern-most wellbore, perfed and acidized 60’ of pay section; well has produced over 90 mmcfg in 7 months.  We have over 30 wellbores with this pay behind pipe; value of just the wellbores is over $ 15 mil.

The Glen Rose production on this lease is extremely rich.  Natural gas BTU is at 1200, condensate is 60 gravity and the gas contains over 4 gallons per MCFG in high end NGL’s.  Austin Chalk and Buda oil is in the 28-32 gravity range.  We estimate that TXCO “gave away” over 2.5 million barrels of NGL’s by sending it down pipe and not stripping the gas.  In our first year of operations, we have stream lined the producing wells into main gathering facilities, created condensate separation and sales for the first time in over 5 years, increased cash flow from a negative $ 45,000.00 trailing 12 months to a positive $ 500,000.00 in 12 months, increased production by 40%, and now we are in the process of doubling production to 3 mmcfgpd, 15 bcondpd and stripping liquids at a rate of 100 barrels of NGL’s per day.  NGL’s are in high demand and our gatherer is paying approximately 60% of WTI index.

Sample reservoir analysis gives the Glen Rose a minimum of 250 mcfg recoverable per acre foot.  It is present on all of our leasehold.  With over 100’ of Glen Rose fractured pay it is estimated that this reservoir alone contains over 325 bcf of recoverable natural gas plus condensate and liquids.  Add in Austin Chalk and Buda oil in excess of 2 mmbo  and  the  potential  in  the  Edwards section, this lease could contain as much as $ 500 million dollars of gross recoverable product that will more than likely produce for another 80 plus years.

13,000 Wide Angle View of Chittim Lease


The discovery well drilled in 1927 produced open hole from the lower Glen Rose section.  This lease was primarily drilled and produced from the lower Glen Rose reservoir.  Strata is shallow, carbonite, stacked pay reservoirs, at depths from 1,200’ – 5,500’.  Historical lower Glen Rose wells have cumulative production of  1 BCF per well. 

Austin Chalk:  149,000 bo produced on two sections (1,280 acres), 1,200’ deep, 70 bopd IP’s, mud log shows and e-log shows on over 11,000 acres never produced.

Buda:  71,000 bo produced on one section (640 acres), 2,400’ deep, mud log and e-log shows on over 12,000 acres never produced, some sections as much as 300’ thick.

Edwards:  “Secondary” geo target for TXCO, never tested, e-log shows over 30’ thick and present in wells stretching over 7 miles apart.  In addition, recent cased hole, pulsed neutron logs on the southern-most well shows 30’ of productive pay in this section.

Glen Rose:  Original geo target, 1,500’ thick, primarily produced from 20’ interval at 5,300’ deep, horizontal wellbores never stimulated or fracked, original drill core analysis from the 1980’s stipulated that, for maximum recovery, wells should be fracked. 

Palo Duro Basin Floyd & Motley Counties, Texas

Palo Duro Basin:
Escopeta has built a sizable acreage position with over 50,000 acres under lease in the Palo Duro basin in two (2) north Texas counties.  Escopeta owns 100% of the acquired leases, all are paid for in cash and there is no debt or liens on the leasehold interests.

The Palo Duro basin compares quite favorably with the Permian-Penn reservoirs in and throughout the Permian Basin and in particular with the Delaware Basin.  Hydrocarbon accumulations surrounding the Palo Duro were sourced from the Lower Permian-Pennsylvanian shales, in particular the Wolfcamp and Atoka.  These organic shale intervals, rich in organic detrital carbonates, are the source of the reservoir for the objective formations that were stratigraphically trapped and sealed where they were deposited and buried.  Detailed studies in the Mississippian are defined as well.

Escopeta has found that there are numerous Wolfcamp and other targets with similar features to the Midland Basin in the Permian.  Geologic and well core analyses have found pay zone thickness of 250 – 600 feet, TOC of 2% – 12%, and porosity of 3% – 18%.  Escopeta expects OOIP of 60 MMBO per 640 acre section and EUR of 650 MBOE per planned well. Total recoverable reserves are expected to be over 200 million BO.

Palo Duro Basin, Texas