Crimson Soaks Up Another 4,700 Texas Acres

Bought 4,700 gross leasehold acres in Madison County contiguous to Crimson’s existing Madisonville Field.

Crimson Exploration Inc., Houston, (Nasdaq: CXPO) has acquired leasehold acres in Texas from an undisclosed seller for an undisclosed price.

The assets include 4,700 gross (4,600 net) leasehold acres in Madison County contiguous to Crimson’s existing Madisonville Field. Crimson has substantially increased its leasehold position in Madison and Grimes counties during 2011 and now has approximately 19,000 gross (15,500 net) acres that it believes to be prospective for a number of liquids-rich formations.

As a result of horizontal drilling and multi-stage frac technology, the Woodbine oil play in East Texas has seen a resurgence of activity. Additional horizontal potential exists in other proven reservoirs including the Austin Chalk, Buda, Georgetown, Lewisville and Glen Rose Formations. By year-end, Crimson will move a rig onto its initial well location, the Mosely #1H (approximately 86% working interest), and anticipates drilling the well to a total measured depth of 16,900 feet, that includes a 7,700 foot lateral. Crimson expects to keep the rig active throughout 2012 in order to assess its acreage position across Madison County and into Grimes County.

Crimson president and chief executive Allan D. Keel says, “We continue to focus our capital program on developing oil-weighted opportunities and the Madison/Grimes County area provides a multi-year inventory of liquids-rich growth opportunities with very attractive internal rates of return.”