HOUSTON--(EON: Enhanced Online News)--Crimson Exploration Inc. (NasdaqGM: CXPO) today announced successful completion of, and initial production on, the Littlepage McBride #2H (53.0% WI) in Karnes County, TX and the KM Ranch #1H (50.0% WI) in Zavala County, TX.
South Texas Eagle Ford
In Karnes County, TX, the Littlepage McBride #2H (53.0% WI), targeting the Eagle Ford Shale formation, commenced production at a gross rate of 1,030 Boepd (952 Bopd and 465 Mcfpd) on a 15/64th choke and 2,700 psi of flowing tubing pressure. The well was drilled to a total measured depth of 16,174 feet, including a 4,200 foot lateral, with 15 stages of frac. The Littlepage McBride #2H is located approximately 0.6 miles east of the Littlepage McBride #1H (53.0% WI) which is currently producing 415 Boepd and has produced a cumulative 78,000 Boe since the commencement of production in early April. The Littlepage McBride #4H (53.0% WI) well recently reached a total measured depth of 16,572 feet, including a 5,600 foot lateral. Also, drilling operations are currently underway on the Littlepage McBride #3H (53.0% WI) which is expected to reach a total measured depth of 16,610 feet, including a 5,800 foot lateral, by early October. Crimson anticipates completion operations to begin on both wells by the middle of the third quarter, and will have a continuous drilling program in this area through at least the first quarter of 2012.
Crimson recently completed the KM Ranch #1H well (50% WI), the first well in its Zavala County Eagle Ford project area. The well was drilled to a total measured depth of 12,627 feet, including a 5,800 foot lateral. The well was completed with 20 stages of frac in late June and flow back operations commenced. Initial flow back data indicated that the well was in communication with an extraneous source of water not coming from the Eagle Ford formation. Diagnostic production logs identified the source of the water entering the wellbore near the toe of the well and in late August the water source was mechanically isolated with the setting of a plug in the casing between frac stages 9 and 10. The well was then placed back on production at a gross rate of 418 Boepd (331 Bopd and 524 Mcfpd) on a 20/64” choke and 397 psi of flowing casing pressure. The extraneous source of water was effectively shut off and for the first seven days of production following the remedial work, the well has averaged 380 Boepd. The initial production rates from the eleven contributing frac stages are the equivalent of a 3,200 foot lateral. Crimson is very encouraged by the latest results showing excellent oil flow potential from essentially half the lateral, which is indicative of good reservoir parameters along with the relatively high gas rates seen in the flow back period.
Crimson has a rig commitment for the Zavala and Dimmit areas and will move that rig to its 9,900 acre Dimmit County Eagle Ford project area in October to drill its first well, the Beeler #1H (50% WI), prior to moving back to Zavala County to drill the KM #2H and #3H prior to year end. Based on results to date, this rig is expected to spend the balance of 2011 and 2012 drilling Eagle Ford wells in the Zavala/Dimmit area.
Madison County, TX
Crimson is finalizing plans to drill its first horizontal Woodbine well, the Moseley #1H (77% WI), in Madison County as early as November 2011. Crimson has approximately 10,000 net acres in this area. This play is currently being developed based on excellent results surrounding Crimson’s acreage. This play will complement our Eagle Ford play in pursuing our stated strategy at the first of the year of focusing on exploiting our liquids rich leasehold positions to provide a balanced mix of liquids and gas production by mid-year 2012.
Crimson Exploration is a Houston, TX-based independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas, primarily in the onshore Gulf Coast regions of the United States. The Company owns and operates conventional properties in Texas, Louisiana, Colorado and Mississippi, approximately 12,000 net acres in the Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties in East Texas, approximately 8,100 net acres in the Eagle Ford play in South Texas and approximately 11,000 net acres in the Denver Julesburg Basin of Colorado.
Additional information on Crimson Exploration Inc. is available on the Company's website at http://crimsonexploration.com.
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission (“SEC”). Such statements include those concerning Crimson’s strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that Crimson expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions Crimson made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Crimson’s control. Statements regarding future production, revenue and cash flow are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, commodity price changes, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes and the potential lack of capital resources. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K for the year ended December 31, 2010, and subsequent filings for a further discussion of these risks.