HOUSTON--(BUSINESS WIRE)--Crimson Exploration Inc. (NasdaqGM: CXPO) announced today the successful completion of the Payne #1H (92.1% WI), its sixth horizontal well targeting the Woodbine formation. The Payne tested at a gross initial production rate of 1,332 Boepd, or 1,128 barrels of oil, 112 barrels of natural gas liquids and 554 mcf of natural gas, on a 40/64th choke and 328 psi of tubing pressure. The well was drilled to a total measured depth of 16,130 feet, including a 7,460 foot lateral, and was completed using 26 stages of fracture stimulation.
The Payne #1H is located in Crimson’s Force Area in Madison County, TX where the Company has approximately 5,975 net acres, or 34 additional net drilling locations based on 160 acre spacing. Including the Payne well, Crimson has successfully completed three operated wells and one non-operated well in the Force Area with an average IP rate over 1,300 Boepd, and an initial oil rate of over 1,140 bopd. The 1,140 bopd average for Crimson’s wells is significantly higher than the industry average in the area of 600 Bopd. The performance from Crimson’s wells demonstrates that this area continues to respond positively to longer laterals and perf and plug completion techniques.
Allan D. Keel, President and Chief Executive Officer, commented, “We are very pleased with the results of the Payne #1H and our continued success operating in the Woodbine formation. With four wells now drilled in the Force Area (three operated and one non-operated) averaging over 1,300 Boepd in initial rate, we are confident our 5,975 acre position in that area is substantially de-risked, thereby providing a repeatable, high margin source of oil production and reserve growth potential for Crimson. We are currently drilling in the lateral section of the Covington-Upchurch #1H well in our Iola-Grimes Area, and given success there, combined with our producing A. Yates #1H well, will have substantially de-risked the 7,650 net acres we have in that part of the Woodbine play.”
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, including approximately 18,500 net acres in Madison and Grimes counties in Southeast Texas, approximately 8,200 net acres in the Eagle Ford Shale in South Texas, approximately 11,000 net acres in the Denver Julesburg Basin of Colorado, and approximately 5,700 net acres in the Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties 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, 2011, 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.