This is D&D = research
DAVIS PETROLEUM, TRANSTEXAS MAKE NATURAL
GAS DISCOVERY IN TEXAS
GALVESTON BAY, Texas, Sept. 16, 1997-- An exploration venture of Davis
Petroleum Corp., a company owned by financier Marvin Davis, and TransTexas Gas
Corp. (NASDAQ NMS: TTXG)today announced the discovery of a large natural gas
and condensate field that could yield significant gas reserves. The discovery, in the Eagle
Point area of Galveston Bay, together with other prospects in the Texas Gulf Coast and
south Louisiana controlled by the venture could contain in excess of 3 trillion cubic feet
of natural gas and condensate equivalent.
The venture anticipates development within one year of eight wells at the Eagle Point
prospect. Testing of the initial Eagle Point well is expected to be completed by next
month. However, initial data indicate that the Eagle Point well will flow at high rates of
gas and condensate, and could become one of the most significant fields for both
TransTexas and Davis Petroleum.
The successful discovery was made in an area of Galveston Bay long overlooked by
other energy interests -- in less than 10 feet of water -- about one mile off the coast of
San Leon, a city roughly halfway between Galveston and Houston. The prospect is one
of six controlled by the venture in the Galveston Bay area, three of which are currently
being drilled.
The exploration venture includes other prospects in Texas and Louisiana. TransTexas
and Davis Petroleum recently participated in a significant discovery in south Louisiana
that is currently being completed. The south Louisiana venture covers an area that
eventually will include more than 350 square miles of 3-D seismic.
The Eagle Point discovery is an important milestone for both Davis Petroleum and
TransTexas. Marvin Davis, Chief Executive Officer of Davis Petroleum, said the
discovery "could be one of the most significant discoveries in the history of Davis
Petroleum Corp."
For TransTexas, which continues to undergo a major shift in its assets and direction, the
Eagle Point discovery reinforces the company's strategy to focus on high-impact areas.
Until the sale by TransTexas earlier this year of its Lobo Trend reserves of 550 billion
cubic feet of natural gas equivalent for $1 billion, the Lobo Trend had generated the
bulk of TransTexas' production. In the past year, however, recent discoveries, including
the Bob West North field in south Texas, have grown to account for most of the
company's reserves.
Arnold Brackenridge, President of TransTexas, said: "The Eagle Point discovery may
exceed the reserves of Bob West North field and consequently should significantly
impact TransTexas' future reserve and production base."
TransTexas, with headquarters in Houston, Texas, owns a fleet of 24 drilling rigs,
operates a full-line services division and acts as the operator for the venture's drilling and
production activities.
Davis Petroleum Corp., also based in Houston, with its staff of explorationists, landmen
and engineers, developed and assembled the drilling prospects. |
