Clayton Williams Energy Provides Update on Operations
May 05 2009 - 3:08PM
Business Wire
Clayton Williams Energy, Inc. (NASDAQ:CWEI) today
provided an update on its exploration and development activities by
area.
East Texas Bossier
The Company today announced that it has perforated and
fracture-stimulated the Sunny Unit #1, a 17,300-foot exploratory
well in Burleson County, Texas. The well was drilled to the Deep
Bossier formation, and completed in the middle Bossier sands. The
Company is currently flow testing the well to determine if the well
is capable of producing hydrocarbons in commercial quantities. To
date, the Company has incurred drilling and completion costs of
approximately $17.7 million on this well (100% working
interest).
South Louisiana
The Company today also announced that it has abandoned the
drilling of the Miami Corp. #1, its exploratory test well in the
Bayou Sale field on its Liger Prospect in St. Mary Parish,
Louisiana, due to down hole mechanical problems.
After drilling to a depth of approximately 12,500 feet, an
attempt was made to run intermediate casing. During that operation,
the casing became stuck in the well bore at approximately 7,000
feet, and subsequent attempts to free it from the well bore were
unsuccessful.
The Company has moved the drilling rig approximately 20 feet
north of the current location and is drilling the Miami Corp. #2 as
a replacement well. The Company has modified the drilling plan to
address the problems encountered in the first well, and will target
the same formation in the lower Miocene sands at an approximate
depth of 17,500 feet. The Company estimates that the combined
drilling cost of both wells will be approximately $15 million (net
to the Company�s interest). The Company and BP America Production
Company will each own a 50% working interest in any production
established by this well.
Clayton Williams Energy, Inc. is an independent energy company
located in Midland, Texas.
Except for historical information, statements made in this
release are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements are based on
assumptions and estimates that management believes are reasonable
based on currently available information; however, management's
assumptions and the Company's future performance are subject to a
wide range of business risks and uncertainties, and there is no
assurance that these goals and projections can or will be met. Any
number of factors could cause actual results to differ materially
from those in the forward-looking statements, including, but not
limited to, production variance from expectations, volatility of
oil and gas prices, the need to develop and replace reserves, the
substantial capital expenditures required to fund operations,
exploration risks, uncertainties about estimates of reserves,
competition, government regulation, costs and results of drilling
new projects, and mechanical and other inherent risks associated
with oil and gas production. These risks and uncertainties are
described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update
or revise any forward-looking statements.
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