At a TVD of 4600', the Chalk is updip where this well was drilled. To answer your question.
The well isn't leaking, however when they were drilling the lateral they encountered a series of depleted fractures. The depleted zone is likely why TXSO was losing returns. It is a void in the formation that once contained oil,water, gas, or all of the above.
However the legacy wells drilled prior the this one have drained the fracture. This tells me that the fracture matrix goes out way further than than a couple hundred feet. If you cant isolate the thief zones, your entire frac is going into those areas.