RE: News on McLendon Comletion&2nd wellGolden Arch Resources Ltd. ('Golden Arch' or the 'Company'). The Company's operator, the Cumming Company of Fort Worth Texas ('CCI') has advised that the McLendon #1 well located in Parker County, Texas has been drilled to a total depth of 5600 feet. Electric logs have established the existence of several zones with sufficient log characteristics to run pipe. Of particular interest was the Marble Falls zone which has been an excellent producer in the area.
CCI intends to perform a sand fracture on the Marble Falls zone to increase production. CCI is one of four companies that has had success in this area deploying the sand fracture technology developed by Mitchell Energy in the Barnett Shale. CCI is also performing sand fractures in the Barnett Shale, and, has just completed an excellent Barnett Shale producer three miles north of the McLendon #1.
Although drilling at McLendon did continue deep enough to reach the Barnett Shale, it is expected that the Marble Falls formation will be a significant producing zone, and, that it could greatly benefit from a sand fracture. Offset production from the Marble Falls has been 800,000 mcfg to 1,000,000 mcfg over approximately a 15 year period. The new sand fracture technology is expected to enhance this production profile.
Additionally, a second prospective zone with excellent porosity, resistivity and microlog was encountered in the Caddo Conglomerate at a depth of 3650 feet.
Golden Arch has a 5-per-cent working interest in the McLendon #1. Completion operations for the McLendon are scheduled over the next two weeks. A second well in this joint venture is expected to commence drilling shortly.