Gulf Coast

1 A Pearsall shale discovery by Cheyenne Petroleum Co. could signal the emergence of a new horizontal play. In LaSalle County (RRC Dist. 1), Texas, #1H ZCW was tested flowing 6.28 million cu. ft. of gas, 742 bbl. of oil and 1,017 bbl. of water per day The well was acidized and fracture stimulated at 11,696-15,517 ft. Gauged on a 24/64-in. choke, the flowing tubing pressure was 3,600 psi and the shut-in tubing pressure was 3,800 psi. The well was drilled to 15,517 ft., 11,786 true vertical, in Section 4, Mary Latimer Survey, A-1050. The discovery could extend Indio Tanks Field, a Pearsall reservoir more than 50 miles to the west-southwest in Dimmit and Maverick counties. Cheyenne Petroleum is based in Oklahoma City.

2 In a lightly drilled part of southwestern Atascosa County (RRC Dist. 1), Texas, Cabot Oil & Gas Corp. has completed an Eagleville Field well. The #1H Joe Hindes A was tested flowing 646 bbl. of 37.3-degreegravity crude per day, with 1.29 million cu. ft. of gas and 910 bbl. of water per day through perforations in Eagle Ford at 8,698-15,048 ft. Gauged on a 48/64-in. choke, the flowing tubing pressure was 200 psi. Drilled to 15,437 ft., 8,139 ft. true vertical, the producer is in Section 1816, RT Co Survey, A-1218. Cabot’s headquarters are in Houston.

3 Davis Southern Operating Co. of Houston has completed a Yegua oil well in Tyler County (RRC Dist. 3), Texas. The #1 Cat’s Back-Rice is in Section 9, BBB&C RR Co Survey, A-154, and flowed 120 bbl. of 37.6-degree-gravity crude, 76,000 cu. ft. of casinghead gas daily, through perforations at 5,044-50 ft. Tested on an 8/64-in. choke, the flowing tubing pressure was 700 psi. The discovery was drilled to 5,756 ft. with a plug-back depth of 5,665 ft.

4 Century Exploration Houston Inc. has completed an Upper Texas Coast discovery in Hardin County (RRC Dist. 3), Texas. The #1 Jacques flowed 5.18 million cu. ft. of gas, 617 bbl. of 53-degree-gravity condensate and no water per day from natural perforations in Yegua at 8,942-61 ft. Tested on a 26/64-in. choke, the flowing tubing pressure was 3,452 and the shut-in tubing pressure was 3,836 psi. Vertically drilled to 9,348 ft., the producer is on a 482-acre lease in the D.C. Montgomery Survey, A-39. Century Exploration’s headquarters are in The Woodlands, Texas.

5 Dallas-based AIX Energy Inc. has completed a third North Louisiana well in the Claiborne Parish portion of Haynesville East Field. The #1 Garrett L&T was tested flowing 800,000 cu. ft. of gas, 110 bbl. of 58-degreegravity condensate and 10 bbl. of water per day through Lower Smackover perforations at 11,442-75 ft. The vertical well was drilled to 12,317 ft. in Section 36-23n-7w. A recent AIX completion in Section 28, #1 Hardin, was tested for an initial daily potential of 100 bbl. of 46-degree-gravity oil, 350,000 cu. ft. of gas and 110 bbl. of water from an acidized zone in Smackover at 10,430-10,520 ft. Total depth is 10,728 ft. AIX’s #2 Hardin produced 344,000 cu. ft. of gas, 100 bbl. of 46.8-degree-gravity oil and 5 bbl. of water daily from Haynesville at 10,132-10,247 ft. after drilling to 12,040 ft.

6 A Lower Smackover Brown Dense wildcat has been scheduled by Houston-based Southwestern Energy Production Co. in Union Parish, La. The #1 BML Prop 31-22-1H will be horizontally drilled to 19,892 ft. in Section 31-22n-1w, and the lateral is expected to bottom almost two miles to the north beneath Section 30. The proposed true vertical depth is 10,875 ft. Abandoned Smackover production in the vicinity comes from Coney Bayou Field to the south and Shiloh Field to the southwest.

7 In St. Helena Parish, La., Calgary-based Encana Oil & Gas (USA) Inc. has completed a horizontal Tuscaloosa Marine shale producer flowing 280 bbl. of 40-degree-gravity oil, 98,000 cu. ft. of gas and 1,277 bbl. of water daily. The well was drilled to 18,164 ft. in irregular Section 73-1s-4e. The #1 Weyerhaeuser 73H was tested through multiple acid-and fracture-treated perforations between 12,882 ft. and 18,019 ft. Tested on a 14/64-in. choke, the flowing casing pressure was 3,090 psi. Encana recently permitted a Chipola North Field offset in Section 60: #1 Weyerhaeuser 60H will be horizontally drilled to 19,000 ft., 12,607 ft. true vertical.

8 Encana Oil & Gas (USA) Inc. has added two new horizontal tests to its Tuscaloosa Marine shale program in Amite County, Miss. The #1 Lawson 25H will be drilled to 11,950 ft. in Section 25-1n-5e. The #1 Anderson 18H is planned for Section 18 with a true vertical depth of 11,950 ft. The horizontal leg is slated to bottom to the north beneath Section 7. The horizontal leg of #1 Anderson 18H is expected to run alongside the operator’s #1 Anderson 17H, which is currently under way; Encana is waiting on completion tools at this well, which reached a total depth of 19,547 ft. (11,877 ft. true vertical). The Tuscaloosa Marine shale venture was drilled in Section 17, with a planned bottomhole to the north beneath Section 8. Encana’s headquarters are in Calgary.

9 McMoRan Exploration of Houston found more potential hydrocarbons at the Blackbeard East ultradeep bypass well. The #1 (BP) OCS G21667 is on South Timbalier Block 144 and was drilled to a true vertical depth of 33,318 ft. According to IHS Inc., wireline logs and conventional core analysis indicated that the Blackbeard East well hit hydrocarbons in the Sparta carbonate section of Eocene and Vicksburg section of Oligocene. The Sparta interval is 300 ft. thick and appears to be a hydrocarbon-bearing fractured carbonate; flow testing will be required to confirm the potential hydrocarbons and flowrates. The new intervals do not include the 178 net ft. of hydrocarbons previously announced above 25,000 ft. in Miocene and the hydrocarbon-bearing sands in Oligocene (Frio). McMoRan holds a 72% working interest in the well, Energy XXI, 18% and Moncrief Offshore LLC, 10%.

10 In Jasper County, Miss., a Renaissance Petroleum Co. Haynesville discovery flowed 2.1 million cu. ft. of gas and 181 bbl. of 56-degree-gravity condensate. According to the

Southeastern Oil Review, #1 Renaissace-Windham 26-14 is in Section 26-2n-11e. The well was drilled to 17,000 ft. and was tested on a 10/64-in. choke with a flowing tubing pressure of 4,788 psi and a casing pressure of 453 psi. Production comes from Haynesville perforations at 15,326—46 ft. with no formation water reported. Renaissance Petroleum is based in Houston.

11 A Clarke County, Miss., directional wildcat has been completed by Jackson, Miss.-based

Spooner Petroleum Co. The #1 Williamson had an initial daily potential of 156 bbl. of 19.4-degree-gravity crude and 14 bbl. of water from acidized perforations in Smackover at 10,723-36 ft. Designated the Shiloh Field opener, the well was drilled to 11,056 ft. in Section 19-2n-18e. The venture was expected to bottom to the southeast beneath Section 20.

All data in the Exploration Highlights section is based on sources believed to be reliable, but its accuracy cannot be guaranteed. The prudent investor intending to act upon any particular data is urged to verify it with all other available sources. In no way should the publication of these items be construed as an express or implied endorsement of a company or its activities.

Most land in the U.S. is divided into townships—rectangular tracts six miles square. The township, in turn, is divided into 36 numbered sections, each a one-mile square. The lines running north-south and dividing east from west are called range lines. The lines running east-west and dividing north from south are township lines.

A well in Section 15-Township 4 north-Range 3 east is abbreviated: 15-4n-3e.