BW0189 APR 09,1999 12:01 PACIFIC 15:01 EASTERN
( BW)(TX-BOYD-ENERGY-CORP)(BECO) Boyd Energy Corporation To Begin
Drilling Natural Gas Well in Illinois Basin
Business Editors & Energy Writers
ARLINGTON, Texas--(BUSINESS WIRE)--April 9, 1999--Boyd Energy
Corporation (the "Company") (OTC BB:BECO) has signed a contract to
commence drilling of the Boyd Jones no. 1 natural gas well on April 19,
1999, in Caldwell County, Kentucky, situated in the southern portion of
the Illinois Basin. The Company purchased the Jones lease comprising 255
acres and accommodating 6 drill locations and holds an option on an
additional 2,000 acres while continuing negotiations on up to 6,000
acres in the P-19 prospect. Boyd Energy owns 100% of the working
interest in the Jones lease.
Boyd Branch, President of Boyd Energy Corporation, reported that the
Company "is proud to have acquired the Kentucky prospect due to the
successful performance of the Devonian Black shale, the proven multiple
pay zones and the presence of both major gas transmissions lines as well
as a strong end user market in the area. Our goal is to become a top
producer and to be known as a trusted and knowledgeable operator in both
Kentucky and the Southern Illinois Basin."
The Boyd Jones no. 1 well will be drilled to a total depth of 4,000
feet encountering the Hunton Group (Silurian) as the primary exploration
target. The Hunton Group lies between two proven sources, the New Albany
Black Shale and the Maquoketa shale. The Company will drill to the
bottom of the Maquoketa shale and search for Silurian Reef deposits. The
primary reasoning behind this area of choice is due to its potential for
the production of natural gas and crude oil.
The area of interest presents geological similarities to those of
the Centralia Field (IL) that has produced 58 million barrels of oil to
date. Wells in the Centralia Field area have reported initial flow rates
as high as 15,000 BOPD with sustained flow rates of 1,000 BOPD.
According to data from wells drilled in the Farmersville area of
Caldwell County, there are an estimated 10 potential reservoirs that can
be penetrated as a result of drilling through the Maquoketa shale in
this area. The Farmersville area has produced wells with an open flow
rate of over 1,250 MMCF per day at 400' depths (Bethel formation) while
blowing free oil from the Renault at 1,120'. A well drilled in the
McCloskey lime section B has been determined to contain 225 MMCF of
natural gas reserves.
Boyd Energy Corporation is an independent oil and gas exploration
and development company located at 1000 Ballpark Way, Suite 210,
Arlington, Texas, 76011, Tel: 817/469-8118, Fax: 817/460-5215 or visit
our Web site at www.boydenergy.com.
Forward-looking statements in this announcement are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that all forward-looking statements
involve risks and uncertainty. Including without limitation to the costs
of exploring for the uncertainty of developing new oil and gas reserves,
the price for which such reserves can be sold, environmental concerns
effecting the drilling and producing of oil and gas reserves, as well as
general market conditions, competition and pricing.
--30--RH/da*
CONTACT: Boyd Energy Corporation, Arlington
Boyd Branch, 817/469-8118
Fax: 817/460-5215
KEYWORD: TEXAS ILLINOIS KENTUCKY
INDUSTRY KEYWORD: ENERGY OIL/GAS |
