Tom,
Benz Commences Drilling of Mississippi Development Well in Oakvale Dome Field
HOUSTON--(BUSINESS WIRE)--Jan. 18, 2000--Benz Energy Inc. (VSE:BZG - news) today announces that it has commenced drilling of the Texstar Petroleum Pacific Enterprises ABC Corp. 30-10 No. 1 (``PEOC') in Jefferson Davis County, Miss. The well is permitted to a depth of 16,750 feet in the Oakvale Dome Field and will develop several reservoirs that produced in down dip wells, as well as test deeper objectives. The well is located approximately one half mile from the salt structure that caused drilling problems in previous development wells that are much closer to the salt structure. Benz owns at least 55% of the working interest in the PEOC and is the operator through its wholly owned subsidiary, Texstar Petroleum Inc. The PEOC is projected to reach target depth in March of this year.
The objective Hosston sands currently produce in the adjacent, but fault-separated, Texstar Katherine Saltry Byrd 31-1 No. 1 and Howell Petroleum 32-4 No. 1 wells. The Byrd commenced production in mid-1997 and is producing 7.8 million cubic feet equivalent per day of gas, and the Howell commenced production in February 1999 and is currently producing 9.5 million cubic feet equivalent per day. Benz owns a 55% working interest in both wells.
Robert Herlin, president and CEO of Benz Energy, commented, ``This development well marks the beginning of a new round of development activity for Benz in Mississippi, and we expect to drill at least two more wells in the Oakvale Dome area. Drilling has also commenced on the exploratory assets recently sold and in which Benz holds a significant back-in interest.'
Benz Energy Inc. is an exploration and development company based in Houston, Texas, focused on natural gas in the U.S. Gulf Coast region of Texas and Mississippi.
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The previous two wells these bozos drilled here got stuck in the salt and went way over budget. This well is on time and on budget, and has not gotten stuck so far. I believe they will be drilling through the Hosston sands either this week or next.
Assuming this well is good, another one is planned right on the heels of this one. With any luck Benz will not make a public announcement of the logging results and instead will wait for the well to get tested before announcing. This will allow folks like us to buy this stock like crazy in the meantime. Don't change this station -- I'll be sure to share any logging info I can come up with.
With the 12-month natgas futures strip above the $2.90 mark, everyone is looking for gas reserves to buy on the cheap. As long as this well is commercial this company will be in a positive cash flow situation and will be an enticing acquisition candidate. They've stripped their staff to the bone (only 7 employees left), so there would be little transition costs needed to be paid by an acquiring company. |
