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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (65599)	5/2/2000 1:45:00 PM
From: The Ox	Read Replies (2) \| Respond to of 95453

Mitchell Energy Begins Infill Drilling Program in North Personville THE WOODLANDS, Texas, May 2 /PRNewswire/ -- Mitchell Energy & Development Corp. (NYSE: MNDA and MNDB) (www.mitchellenergy.com) announced today it has begun an infill drilling program in the North Personville field in East Texas. North Personville and several smaller fields comprise the company's second largest producing area with some 74,000 acres under lease. Almost 300 wells have been drilled there since the late 1970s, targeting primarily the Cotton Valley limestone formation. The infill program extends the application of light sand fracture completion technology, which was perfected during the last two years in the company's North Texas drilling operations. This new technology reduces the cost to drill and complete a typical limestone well by approximately $350,000, or 30 percent. The sharply lower well costs now allow the company to economically reduce well spacing to increase gas production and ultimate reserve recovery. Only 33 percent of the gas in place is being recovered from the dense limestone formation on the current 160-acre spacing pattern. Depending on rig availability, 18 to 24 infill wells are planned for this year, and a total of 110 infill locations could ultimately be drilled. The first infill well spudded in February had initial production of almost four million cubic feet of gas per day and is still producing at well over three million cubic feet per day. The company is encouraged by these results and expects the infill program to increase current daily production from North Personville by 25 percent to 50 million cubic feet by the end of the year. Equally important, if successful this program could add 100 billion cubic feet of reserves to the field. "We're excited about the potential of the North Personville infill program. This is a good example of our ability to exploit our large lease blocks using new technology and operating expertise," said George P. Mitchell, chairman and chief executive officer. Mitchell Energy & Development Corp. is one of the nation's largest independent producers of natural gas and natural gas liquids. Mitchell's shares are traded on the New York and Pacific stock exchanges under the symbols MNDA (voting) and MNDB (non-voting). This release contains forward-looking statements. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward- looking statements include the timing and extent of changes in commodity prices for natural gas, NGLs and crude oil; the attainment of forecasted operating levels and reserve replacement; and unexpected changes in competitive and economic conditions, government regulations, technology and other factors. SOURCE Mitchell Energy & Development Corp. CO: Mitchell Energy & Development Corp. ST: Texas IN: OIL SU: 05/02/2000 08:30 EDT prnewswire.com