Pesto, LLC., headquartered in Texas, owns a 200,000 acre oil and gas lease in Maverick County, Texas with two recently drilled and fracked gas wells and a third currently being drilled. As part of this oil and gas play, Pesto has established business relationships with Halliburton, Schlumberger Baker Hughes, Weatherford, and Pioneer through our operator Aterra Exploration. Pesto invested over $40 million on the lease acquisition and production with over $23 million investment in 2012 – 2013.
South Texas Shale
The Pearsall shale is an unconventional shale oil and gas play currently being explored by several major oil and gas companies. It is regional in extent and covers a large part of South Texas, overlapping to a great degree the productive area of the unconventional Eagle Ford Shale. The Pearsall Shale is up to 450 feet thick and consists of organic rich shales, shaley limestones, and limestones which can produce natural gas, natural gas liquids, and oil. The Pearsall Shale is a prime target for horizontal drilling and large, multi-stage fracture stimulation; the same process that have transformed the Baken and Eagle Ford formations into major oil and gas producing plays in the United States. The Pearsall Shale play is in the early stages of development with over 20 horizontal wells drilled to date.
Horizontal Directional Drilling
Horizontal directional drilling allows us to minimize the drilling footprint and target the specific production area to extract hydrocarbons in the most efficient manner. Once oil and gas production begins, the liquid hydrocarbon production is gathered at the well site and the natural gas is transported by pipeline to the larger market main line pipelines and on to stripping facilities to separate the hydrocarbon product stream. Clean burning pipeline quality natural gas is one of the products produced that is used in home cooking and heating along with propane, butane, and ethane. The natural gas is sent to consumers in the surrounding area, helping replace coal and other heavier fuels that are currently being used. The propane, butane, and ethane are transported to downstream facilities for export. The 200,000 acres of leasehold in the Maverick Basin in South Texas is expected to produce high BTU gas with a significant NGL fraction, and possibly oil.