PRODUCTION COMMENCES FROM FIRST DISCOVERY FIELD IN GALVESTON BAY
Program with Davis Petroleum Corp. Also Logs Two Additional Field Discoveries
HOUSTON, March 31, 1998 - TransTexas Gas Corporation (NYSE: TTG) announced that it had commenced production of natural gas and condensate from its Eagle Bay discovery. Initial production however, is constrained by condensate separation facilities at Texas City on the west shore of Galveston Bay. Production from the Eagle Bay field is initially expected to ramp up to 75 - 100 million cubic feet of natural gas per day (MMcfd) and 17,000 barrels of crude and condensate per day by July of this year as incremental production facilities are completed and the second well is added.
TransTexas is planning to build infrastructure at Smith Point on the east shore to handle a total of 200 MMcfd of natural gas and 37,000 Bpd of crude and condensate production. Construction of this additional capacity is subject to successful completion of the second delineation well, the State Tract 352 #1. This well is currently drilling at a depth of 13,200 feet and is planned to reach total depth by late April. A 3.2-mile, 20-inch pipeline has been completed between the company's production platform and an existing 18-inch pipeline owned by Tejas Gas Corp., that crosses Galveston Bay from Texas City to Smith Point.
The first two wells in the field, State Tract 331 #1 and State Tract 331 #3 have each been tested,with natural gas flow rates of 76.4 MMcfd and 41.0 MMcfd. These two wells also flowed crude and condensate at rates of 11,002 and 10,700 Bpd respectively.
The venture between TransTexas and Davis Petroleum Corp. has also made two other new field discoveries. The first of these is a natural gas discovery known as Austin Bayou, located near Galveston Bay in Brazoria County, TX. The third discovery is located in Vermilion Parish, LA, operated by a third party, where a delineation well has been successfully logged. TransTexas owns a 75% working interest in the drilling program with Davis Petroleum Corp., which owns the balance of 25%.
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