re: CXPO.OB (Crimson Exploration) - well results
Joe,
what a great and nice surprise indeed - I'm baffled. Congratulations regarding this great pick of yours. I sense it has a lot of potential.
This time I guess it was more luck than analysis, at least on my part. <g> A Haynesville gas well at 30.000 mmcf per day and CXPO owns 52% of this "Bruin" prospect. And this is just the first well and the first productive zone tested !
I wonder how many wells CXPO is going to drill in the 9000 acre play - and we haven't even had any results from other zones (potentially oil bearing PETTET zone or WILCOX gas sands..)
To me, it looks like this play could easily double CXPO daily production with just 3 wells like that.
finance.yahoo.com
Crimson Exploration Announces First Successful Haynesville Shale Well
Press Release
Source: Crimson Exploration Inc.
On 10:00 am EST, Monday November 2, 2009
HOUSTON----Crimson Exploration Inc. (OTCBB:CXPO - News) today announced that its Kardell Gas Unit #1H well in San Augustine County, Texas, in which the Company owns a 52% working interest, was successfully completed in the Haynesville Shale formation. The remaining 48% working interest is owned by the unit operator, Devon Energy (NYSE:DVN - News).
The Kardell #1H was drilled to a total measured depth of 18,350 feet with a total lateral length of approximately 4,500 feet and 12 stages of fracture treatment. The Kardell #1H experienced one of the highest reported 24-hour initial potential rates for a Haynesville Shale well (East Texas and North Louisiana) at 30.7 million cubic feet of natural gas per day on a 37/64 inch choke with 6,824 psi of flowing pressure. The well has been hooked up and is currently flowing to sales. On a net basis to Crimson, and at this rate, production from the Kardell well represents an approximate 31% increase over our average daily production of 38.2 million cubic feet of natural gas equivalents per day during the third quarter.
In addition to the Haynesville Shale formation, the well encountered a thick Mid-Bossier Shale interval with characteristics similar to known Haynesville and Mid-Bossier completions in East Texas and Louisiana. The Mid-Bossier represents significant additional potential to Crimson’s leasehold position in the southern portion of the East Texas Haynesville Play. The Kardell #1H also encountered hydrocarbon shows in the shallower Knowles Lime, Pettet, and James Lime formations, each of which are being evaluated for future drilling activity.
The Kardell #1H was drilled on the eastern edge of Crimson’s “Bruin” prospect where it controls approximately 3,000 acres. The Company is currently in the planning stages of several wells in the “Bruin” area that will further evaluate and exploit these multiple formations beginning in early 2010. Crimson has an additional 9,000 acres outside the “Bruin” area within Sabine and San Augustine counties and expects to commence the initial well on that acreage in early 2010.
Allan D. Keel, Crimson President and CEO, stated - “The Kardell #1H well is another transformational event for Crimson as it continues to build on its multi-pronged strategy of acquisition, exploitation and exploration. We are very pleased with the results from our first East Texas resource-play well and are excited about the multi-pay potential underlying our approximate 12,000 acres. Our early evaluation of the southern area showed similar potential in the Haynesville as that seen in the Haynesville “Core Area” in North Louisiana, yet it had the additional potential in the Mid Bossier. The Haynesville success experienced in the Kardell #1H and recent Haynesville activity from offset operators in this immediate area have proven this early concept. Crimson looks forward to an active year of drilling in this area in 2010, both operated and non-operated. Combining this longer life natural gas asset, with over 100 potential drilling locations in multiple formations in the Bruin prospect alone, with our set of low risk, high return Gulf Coast exploitation opportunities and South Texas exploration prospects, provides us with a balanced, high quality inventory of drilling opportunities that should provide significant growth opportunity for years to come.”
Crimson Exploration Inc. is a Houston, TX-based independent energy company engaged in onshore oil and gas exploration and production in South Texas, East Texas and the Upper Gulf Coast. For additional information, visit www.crimsonexploration.com. |
