Just south of Encinal, north of Laredo, just across the border from Mexico lies the nearly contiguous 72,000 acres under lease by Laredo Energy. The position was assembled prior to the discovery of the Eagle Ford Shale play and its consolidated nature is particularly conducive to the significant economies of scale associated with unconventional development.
Geologically, Laredo’s leasehold is located on a stable shelf between the Edwards Reef to the northwest and the Sligo Reef to the southeast. Laredo drills all stacked pay targets under their acreage, which include Escondido (3,700′-7,400′), Olmos (5,600′-9,600′), Austin Chalk (9,100′-12,500′), Upper Eagle Ford (9,500′-12,800′), and Lower Eagle Ford (9,700′-13,000).
Laredo manages all operations on its acreage and maintains a high ~70% working interest in its properties. Prior to initiating its Lower Eagle Ford program in 2017, Laredo completed and currently produces from over 140 wells across the Escondido, Olmos, Austin Chalk and Upper Eagle Ford zones.