Crimson Exploration Inc. Announces Second 2013 Woodbine Completion and Provides Drilling Update
Crimson Exploration Inc. (NasdaqGM: CXPO) announced today the successful
completion of the Mosley B #1H (82.8% WI), its second Woodbine oil well
in the 2013 capital program, at a gross initial production rate of 1,143
Boepd, or 984 barrels of oil, 86 barrels of natural gas liquids and 437
mcf, on a 26/64th choke. The well was drilled to a total
measured depth of 15,366 feet, including a 6,044 foot lateral, and was
completed with 22 stages of fracture stimulation.
One mile to the east, the Payne B #1H (83.5% WI) well, targeting the
Woodbine formation, is currently drilling at 11,925 feet toward an
estimated total measured depth of 15,740 feet, including an estimated
6,600 foot lateral. The well is anticipated to be completed with 22
stages of fracture stimulation, with first production expected by the
end of May. Upon completion of drilling operations, the rig will move
approximately one mile north to begin drilling the Grace Hall C #1H well.
In Grimes County, Texas, Crimson has been notified by its midstream
provider that initial start-up has commenced for the Central NGL
Refrigeration Unit that will serve the Covington-Upchurch #1H. The well
has been producing the Woodbine-Lewisville Sand at 2,500 Mcfepd (1,900
Mcfpd and 100 barrels of oil) on a highly restricted choke through-out
the delay of plant start-up. Once the plant is fully operational, the
Covington-Upchurch #1H will begin producing operations under normal
conditions.
In Dimmit County, Texas, the Beeler #2H well (50.0% WI), targeting the
Buda formation, is currently drilling at 6,025 feet toward an estimated
total measured depth of 11,180 feet, including an approximate 4,000 foot
lateral. As typical for the area, the Beeler #2H will be completed
naturally without fracture stimulation. Crimson currently estimates it
holds approximately 8,475 gross acres prospective for the Buda formation
in its Booth-Tortuga area. The Beeler #2H is Crimson’s first well
targeting the Buda formation and initial production is expected in May.
Allan D. Keel, President and Chief Executive Officer, commented, “The
continued success of our Woodbine drilling program in our Force area of
Madison County, Texas further validates our acreage position as being
one of the best in the play. Including the Mosley B #1H, our 24-hr
initial production rate in the Force area for operated wells has
averaged 1,184 Boepd. In Grimes County, we are very pleased with the
rate and pressure performance of the Covington-Upchurch well under
severely restricted production conditions and look forward to bringing
the well up to its full potential. In South Texas, we are excited to be
drilling our first Buda well. We anticipate results from the Beeler #2H
in the near future and are optimistic that the Buda formation will
provide another opportunity for oil growth in our portfolio.”
Crimson Exploration is a Houston, TX-based independent energy company
engaged in the exploitation, exploration, development and acquisition of
crude oil and natural gas, primarily in the onshore Gulf Coast regions
of the United States. The Company currently owns approximately 95,000
net acres onshore in Texas, Louisiana, Colorado and Mississippi,
including approximately 19,000 net acres in Madison and Grimes counties
in Southeast Texas, approximately 8,600 net acres in the Eagle Ford
Shale in South Texas, approximately 10,000 net acres in the DJ Basin of
Colorado, and approximately 4,800 net acres in the Haynesville Shale and
Mid-Bossier gas plays and James Lime gas/liquids play in East Texas.
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”) and applicable
securities laws. 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, cash
flow operating results, leverage, drilling rigs operating,
drilling locations, funding, derivative transactions, pricing, operating
costs and capital spending, tax rates, and descriptions of our
development plans 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, the proximity to and capacity of transportation
facilities, the timing of planned capital expenditures, uncertainties in
estimating reserves and forecasting production results, operating and
drilling risks, regulatory changes and the potential lack of capital
resources. All forward-looking statements are based on our forecasts for
our existing operations and do not include the potential impact of any
future acquisitions. 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, 2012, and
subsequent filings for a further discussion of these risks. Existing and
prospective investors are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof. We
undertake no obligation to publicly update or revise any forward-looking
statements after the date they are made, whether as a result of new
information, future events or otherwise.
