THE NEWS
BusinessWire, Wednesday, November 11, 1998 at 09:39
HOUSTON--(BUSINESS WIRE)--Nov. 11, 1998--Fortune Natural
Resources Corporation (AMEX:FPX) announced today its recent
exploration and well completion results.
South Timbalier Block "86" -- Offshore Louisiana -- Federal OCS
In August 1997, Fortune farmed out its 50% working interest in
South Timbalier "86" to a large-cap energy company. That company has
now completed drilling a 13,400 foot well on the prospect and has
encountered approximately 100 feet of gross pay and 60 feet of net pay
in the P-95 sand which cored 41 gravity oil/condensate and an
additional 23 feet of net pay in the BP sand. The well has been
completed but has not yet been tested. Under the terms of the farm-out
agreement, Fortune has an election, at the earlier of payout,
installation of a platform/caisson or the commencement of a
development well, to either (a) escalate its current 3.167% overriding
royalty before payout to a 4% overriding royalty net to Fortune on all
production after payout; or (b) convert its overriding royalty to a
12.5% working interest, whereby Fortune would pay its share of future
costs and be entitled to receive its proportionate share of future
revenues after payout. Under either option, Fortune retains its 3.167%
overriding royalty interest before payout. Fortune will evaluate the
economics of each alternative before making its election. It is
anticipated that the well will be placed on production after mid-1999.
This discovery is not associated with Fortune's producing interest in
South Timbalier "76," which is approximately 25 miles away.
Espiritu Santo Bay, Calhoun County, Texas -- Transition Zone,
Texas Onshore and Offshore Gulf Coast:
Shark Prospect: The company logged 30 feet of net pay in the
"G-1" and "G-2" upper Frio sands and additional potential pay, lower
in the well, in several other upper Frio sands including the "H," "I"
and "J" intervals in the No. 164-4 on its Shark Prospect in Espiritu
Santo Bay. While drilling, the well experienced a down-hole blowout at
the bottom of the well which took just over a week to bring under
enough control so that casing could be run across the pay sands. Since
that time, numerous attempts have been made to cement the casing in
place and test some of the intervals in the well. All such tests and
cement bond logs have resulted in evidence that the blowout is
continuing behind the casing and an adequate cement job can not be
obtained to produce the pay sands. One further attempt, the first
attempt in the "G-1" sand, is scheduled for later this month from
barge-mounted equipment.
Spring Prospect: The company drilled, completed and tested
several Miocene sands in the State of Texas No. 1 well on Matagorda
Island. A flow rate of only 175 mcf/d and 60 bbls of water was
established which did not justify construction of production hook-up
facilities therefore the well will be plugged and abandoned.
Redfish Prospect: The company has logged the No. 216-16 at Grass
Island in which it has a 4.12% working interest. The well logged 72
feet of potential net pay in multiple sands which have produced in and
around the Grass Island Field. An additional 40 feet of net pay is
possible, in a separate zone, pending core sampling which is expected
within the next 48 hours. Once core sampling is completed, completion
operations will commence on this well.
Swordfish Prospect: After completion of the No. 216-16, it is
anticipated the barge rig will move next to the Swordfish Prospect and
drill the No. 210-5 well in Espiritu Santo Bay.
La Rosa -- Texas Onshore Gulf Coast:
The previously announced La Rosa C-5 well was completed and has
been placed on production at 900,000 cubic feet of gas a day and 5
barrels of condensate per day with approximately 1,000 pounds of
pressure from the fields 8,000' sand. The next well, the Michna 11,
which is a follow up to the recent successfully completed Spaulding 12
well, is expected to spud prior to year end.
Ship Shoal Block 43 -- Whiskey Pass -- Transition Zone,
Louisiana Offshore
The company participated in the drilling of the Rozel No. 1 well
on the Whiskey Pass Prospect. The well logged 15 feet of net pay in
the primary target sand (the Terra Sand), which calculated to an
approximate 2.4 BCFE discovery gross and 1.8 BCFE net. However, the
well was plugged and abandoned because the estimated reserves did not
justify the costs of completion and setting a barged production
facility.
Tyrone J. Fairbanks, president and CEO of Fortune stated, "By
Dec. 31, 1998, assuming conditions and weather permitting, Fortune may
have participated in up to 20 new wells this year, a dramatic increase
over last year's two wells. Mr. Fairbanks added, "We believe, upon
completion of the previously announced proposed mergers with 3DX
Technologies Inc. (NASDAQ:TXDT) and the Petro-Guard Companies, and the
addition of all the 3DX and Petro-Guard 3-D seismic defined prospects,
1999 promises to be a very active exploration year for the company."
CONTACT: Fortune Natural Resources Corporation, Houston
John L. Collins, 281/872-1170
My take on this is,
1. Spring Prospect- FAIL
2. Whiskey Pass (Rozel No.1) - FAIL
3. Redfish Propect- TBD
4. Shark Prospect - TBD, one more attempt?
5. South Timblier 86- some potential TBD
TBD= to be determined.
Result: Nothing to bank on, however at least we have been drilling. |
