As of December 31, 2018, our South Texas region included
approximately 56,400 gross (29,300 net) acres, proved reserves of 5.4
Bcfe and 65 gross (32.2 net) producing wells. In the Dimmitt and Zavala
counties part of this region, we believe approximately 15,700 gross
(7,100 net) acres to be prospective for the Buda, Georgetown and Eagle
Ford Shale plays. Our estimated net proven Buda/Eagle Ford/Georgetown
reserves in this area were 1.8 Bcfe, comprised of 73% liquids, with 27
gross (11.7 net) producing wells, as of December 31, 2018. No drilling
activity has been conducted in this area since 2014 due to the reduction
in our capital expenditure programs in response to the commodity price
environment, with the exception of two successful non-operated
Georgetown wells in which we participated in drilling in 2017 and 2018.
Of the proved reserves in this area, our estimated net proved reserves
related to these two drilled wells is 0.6 Bcfe, as of December 31, 2018.
For 2019, we currently plan to participate in two more non-operated
Georgetown wells in Dimmitt County, and should we experience sustained
improvement in commodity prices, we could increase our activity in
pursuit of the Georgetown in this area.
Our South Texas region also includes approximately 40,700 gross
(22,200 net) acres located in conventional fields that produce primarily
from the Wilcox, Frio, and Vicksburg sands. Our estimated net proved
conventional reserves in this region were 2.9 Bcfe, comprised of 71%
gas, with 22 gross (9.7 net) producing wells, as of December 31, 2018.
During 2018, we sold non-core conventional assets located in South
Texas for approximately $0.9 million. The average net daily production
of these sold properties was 1.4 Mmcfe/d for the year ended December 31,