FOR IMMEDIATE RELEASE
Monday, December 8, 1997
CLAYTON WILLIAMS ENERGY ANNOUNCES
SUCCESSFUL EXPLORATION RESULTS
MIDLAND, TEXAS, December 8, 1997 -- Clayton Williams Energy, Inc. today announced first results from its emerging exploration program with a Wilcox field discovery on the Mamou prospect in Evangeline Parish, Louisiana. The discovery well, the Perron No. 1, was drilled as a directional well to a total depth of 14,263 feet. Open hole log and sidewall core evaluations indicated potential pay in both the Wilcox and Sparta formations. The well was perforated and completed without stimulation in the second Wilcox sand
and tested flowing at equivalent daily rates of 341 BO, 1,097 MCF, and 2 BW on a 14/64" choke with 1,490 psi flowing tubing pressure. Currently the
well is shut-in for a bottom hole pressure build-up and construction of production facilities. The Company owns a 100% working interest in this well.
In its Austin Chalk area, the Company has previously announced the
acquisition of approximately 50,000 acres under two separate farmout
agreements near its North Giddings Block. The Company has drilled 3
successful wells on its southern farmout and plans to continue drilling this acreage. The Company has drilled one successful well on its northern farmout and recently completed a second well which it is evaluating. The Company plans to continue drilling on this acreage on a well by well basis.
The Company continues infill-drilling activities in the northern portion of its North Giddings Block where the results have been positive and
additional locations have been added. The Company plans to drill two
additional wells in the Southern portion of its North Giddings Block which will complete its drilling in this area. The Company will retain its remaining acreage in the southern portion of the block for other prospective formations, including Cotton Valley Pinnacle Reefs.
The Company is currently processing its Cotton Valley 3-D Seismic Survey and interpretation has begun on the northern quarter of the survey. Any drilling resulting from this survey will begin in the first quarter of 1998.
The majority of the Company's 1998 capital expenditures will be on its
emerging exploration program in Mississippi, Louisiana and Texas and on Cotton Valley Pinnacle Reef drilling if seismic interpretation warrants. These plans will continue the Company's shift of emphasis from its traditional Giddings Field area. Accordingly, the Company's ability to replace its production and maintain or increase its reserve level will be largely dependent upon exploratory drilling results.
The Company has entered into swap arrangements for approximately 1,900,000 barrels of oil for the period from December 1997 through December 1998 at an average price of $19.61. In addition, the Company has hedged 760,000
MMBtu of its gas production through March 1998 under collar arrangements with average floor prices of $3.02 and average ceiling prices.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission.
Contact:
Lajuanda Holder Mel G. Riggs
Director of Investor Relations Chief Financial Officer
(915) 688-3419 (915) 688-3431
email: cwei@worldnet.att.net
website: www.marshill.com/cwei |
