While the Texas Gulf Coast oil and gas producer has production from three wells in the Heintschel field its latest, the Truchard-3 Wilcox sands producer, is flowing at an average of just 825,000 cubic feet per day and 15 barrels of condensate per day, a disappointing result, especially in the current energy price environment.
Burleson's share is a 39.19% net revenue interest.
In light of the fall in energy prices the company has reviewed its costs base and decided to make further reductions to its overheads to protect its remaining cash of $537,000.
From May 1 Burleson's US-based technical team, AKG Energy, and all executives will no longer be paid a fixed retainer, but will be paid $1000 per day for "essential services" assuming they are pre-approved by chairman Michael Sandy.
The company says that while energy prices are low the entry prices for new projects are also suppressed, so it wants to sell its existing production, which includes the three producers in the Heintschel field and two shut-in wells to fund new exploration opportunities and to progress the 1K3D seismic project via farm-in.
The 1K3D project refers to the company's 1000 square miles of 3D seismic that it acquired in 2008 in Texas, under which it has identified more than 30 prospects, mostly shallow, low-cost oil plays.
The company admits trying to get an attractive sale price or farm-in offer in the current market is unlikely.
It expects to pay $125,000 on exploration and overheads next quarter.