Mexco Energy Corporation, Midland, Texas, (AMEX: MXC) has reported the results of further tests of a well in Andrews County, Texas.
Mexco Energy participated as a working interest owner in a well drilled to a depth of approximately 5,000 feet in the Grayburg and San Andres producing intervals in the Fuhrman-Mascho Field of Andrews County, Texas. Based on a report from the operator, this well is currently producing at a rate of approximately 90 barrels of 28 gravity oil and 130 barrels of water per day. Mexco's working interest in this new well is 10.8% (net revenue interest of 7.77%).
The rates at which this will be produced and sold may be substantially different, based on regulatory and engineering considerations as well as performance of the well over longer periods of time. This property contains an additional 11 potential drill sites in the Grayburg and San Andres formations.
"This development of these long-lived oil reserves for the company is expected to continue with drilling of further development wells and re-working or replacement of the other four existing wells on the lease," says Nicholas C. Taylor, president and chief executive officer of Mexco.
Separately, Mexco announced the drilling by Chesapeake Energy Corp., Oklahoma City, Okla., (NYSE: CHK) of two additional horizontal wells on acreage in which it owns overriding royalty interests in the Haynesville area of Desoto Parish, Louisiana. There are five other wells producing on this acreage and 57 remaining potential drill sites. Other potential producing zones include the Bossier and Cotton Valley, which are situated above the Haynesville.
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