Fortune Natural Resources Corporation Announces Exploration Program Update for Second Half of 1998
HOUSTON--(BUSINESS WIRE)--MAY 27, 1998--FORTUNE NATURAL RESOURCES CORPORATION (AMEX SYMBOL:FPX AND FPX.W) announced today its exploration plans for the second half of calendar year 1998.
La Rosa -- Texas Onshore Gulf Coast
Nine new shallow prospects (above 9000') have been identified off the proprietary 24 sq. mile 3D seismic survey. Based on a meeting with the operator last week, the first two prospects are being permitted with the first well expected to spud in late June or early July. The rig is expected to move to the second prospect immediately thereafter. If these initial wells are successful, two additional prospects are proposed to be drilled immediately thereafter. Each of these wells should take approximately 12 to 20 days to drill and complete. The Company owns an 18.75 percent working interest in the newly generated prospects and a 37.5 percent working interest in substantially all existing production in the LaRosa field.
Espiritu Santo Bay -- Transition Zone, Texas Onshore and Offshore Gulf Coast
Thirteen prospects have been identified thus far on the 135 sq. mile proprietary 3D seismic survey. Permitting of these prospects was commenced early this year and has been tedious. Approval from numerous jurisdictional agencies is required for permitting many of the prospect wells. It is also the preference of the partners to drill these prospects successively utilizing the same rigs for economic benefit. Permits have been received on some wells from some agencies, however only one well has received all permits required from all agencies. The operator, who is coordinating the permitting, has advised Fortune that it anticipates that drilling should commence in approximately 60 days (on or about August 1st). Each of these wells should take approximately 15 to 30 days to drill and complete. The Company owns a 12.5 percent working interest in Espiritu Santo Bay.
Ship Shoal Blocks 43 and 67 -- Transition Zone, Louisiana Offshore
The Company has entered into agreements to participate in the drilling of two shallow prospects (Whiskey Pass and Sea Serpent) which were identified by another company on a 25 sq. mile transition zone 3D seismic survey which Fortune also owns. Permitting is completed on both prospects except for shale pad permits that are to be constructed prior to spud. The first well is expected to spud within the next 30 days. Whisky Pass will be drilled first; then, the rig will be moved to Sea Serpent. Both prospects have a potential follow-up development location, depending upon the results of the first well on each prospect. Each of these wells should take 15 to 30 days to drill and complete. If successful, facilities and hook up will take another 90 to 120 days after completion. Fortune will pay 12.5 percent of drilling and completion costs.
It is unlikely that all of the prospects identified thus far at LaRosa and Espiritu Santo Bay will be drilled this year or that all drilled prospects will be completed. The current drilling schedule is subject to changes due to numerous factors, all of which are beyond the Company's control, including equipment scheduling, weather, environmental and regulatory constraints, permitting and other operator activities. The Company's capital requirements may vary greatly depending upon the pace and success of the drilling schedule. However, the Company believes that it has sufficient capital resources to sustain the drilling operations that are planned for the remainder of the year.
FORTUNE NATURAL RESOURCES CORPORATION is an independent oil and gas exploration and production company with its principal properties located onshore and offshore Louisiana and Texas. Certain statements in this news release regarding future expectations and plans may be regarded as "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. They are subject to various risks, such as operating hazards, drilling risks, and other uncertainties inherent in the business of exploring for, developing and producing oil and gas which may be beyond the Company's control. For a discussion of the contingencies and uncertainties affecting future events and forward-looking statements see Fortune's Annual Report on Form 10-K for the year ended December 31, 1997, as well as other filings with the Securities and Exchange Commission. There can be no assurance that the Company will be successful in meeting its expectati |
