Crimson Exploration Announces Successful Mid-Bossier Well (12/9/10)

Crimson Exploration Inc. Announces Successful Mid-Bossier Well, Drilling Update and a 58% Increase in Proved Reserves

HOUSTON, Dec 09, 2010 (BUSINESS WIRE) --

Crimson Exploration Inc. (NasdaqGM: CXPO)today announced the completion of the Gobi #1 H well (70% WI) in the Bruin Prospect area in San Augustine, County, TX. The well was completed in the Mid-Bossier formation at a total measured depth of approximately 18,000 feet, including a 4,400 foot lateral and 14 frac stages. It is producing at a restricted gross rate of 11.7 million cubic feet of natural gas per day on a 16/64 choke, with flowing tubing pressure of approximately 9,400 psi. This well is Crimson's second operated well and third overall in the Bruin Prospect. We continue to employ the strategy of restricting initial flow rates, and maintaining higher pressures, to maximize Estimated Ultimate Recovery ("EUR"). We have gradually increased rate on the Gobi while maintaining pressure at greater than 9,000 psi for the last 16 days, a strategy also used on our first operated well, the Grizzly #1 (55% WI), which commenced production at a similar rate and pressure as the Gobi. The Grizzly well has been on production for approximately 120 days, is currently producing at a rate of 7.3 Mmcfpd with flowing tubing pressure of 6,524 psi on a 15/64 choke and has a cumulative production of just over 1 Bcf.

Mr. Allan D. Keel, Crimson's President and CEO, commented, "The results of the Gobi and Grizzly wells to date provide a strong indication of the consistency in the productivity of the Mid-Bossier Shale and demonstrate that restricted flow rates should maximize well performance and enhance EURs in this resource play."

In our Fairway Farms Prospect Area in San Augustine County, completion operations in the Mid-Bossier have commenced on the Halbert Trust #1 (29% WI), operated by Eagle Oil & Gas. The Halbert includes a 4,200 foot lateral with 14 frac stages. Initial production is expected to commence in late December.

In our Tiger Prospect Area in Sabine County, TX, the Bengal #1 (37.5% WI) has reached total measured depth of 18,100 feet, including a 4,400 foot lateral in the Mid-Bossier shale. Crimson anticipates completion operations to commence in January with initial production to immediately follow. This is Crimson's first operated well in the Tiger Prospect Area. The drilling rig has since been moved to the Blue #1 (71% WI), located in the Bruin Prospect area, and is expected to reach total measured depth in February 2011.

 

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Thanks for the update, Les. It should make for some happy shalers in San Augustine County.
Les can you tell based on the choke size and production what these might look like if they were opened up like some of the early wells in terms of IP? I can't wait til we see them drill some 6000' laterals!

AL, the Gobi well would probably flow at +/- 25 MMcfd on a more traditional choke size.

Sweet.  Thanks.

Looks  like $$$$$ to my eyes ! I have a aunt that lives their and my uncle just recently passed away October 1, 2010. He and my mother were sister and brother, this is some of the inheritance that has been in our family , dated back in the 1800's from our great grandparents. And now my aunt thinks she is trying to fool me by saying that nothing is going on and that it is no money coming to us. She just married into the family and now her husband has passed, but my mother was the blood kin granddaughter that inherited it from her grandparents and now this aunt thinks she is trying to swindle me out of my inheritance from my mother's side of the family where this originated at. Just saying , how people will react when there is money involved, I thought so much of her over the years but now I am seeing a different person in her, she has already lied on another tract of land last year and went before a notory without my brother and I knowing anything and we didn't get our part of that one, and the Good Lord know! Just Saying!

Cher, Thanks s for the input and I do appreciate your point of view here, but this has been a on going thing with her for quiet some time now. It's just a lot more to this then I have even mentioned on this subject with her going on. And I have given her the benefit of the doubt believe me. I just can't believe for someone that worked on the Pipeline all of his life and accomplished so much in life and had so much over the years and was really well off and had it made and was such a well thought of person in his coommunity for years, the both of them in fact. They were very well off people and had so much and he was such a angel believe me when I say that, but I'm sorry I can't say the same for her now at last. After his rescent passing she had the nerve to tell me that he didn't have any insurance to even bury him and now she has all of these bills on her now and she just doesn't know what she if going to do now. He was the type of man that always looked out for his future and always took care of stuff like that and look out for his family in a case that anything would happen to him . He was retired from the Pipeline now for many years and lived off of a very substancial income from this and now she is going to sit there and say he had no money to bury my uncle. That is BS! I don't believe that for one moment. He has been taking care of and supporting a grown daughter now for a good many years , a daughter that is 61 years old in fact because she is too lazy to try to do anything for herself not because she can't , but won't, he always said he was giving her , her inhertance now while he was living by taking care of her all of this time by paying her bills and providing her with free rent to one of his rent homes, and buying her groceries for her and her live in  man friend. Hmm! My aunt says that those days are over she's not getting one penny from her for nothing, nor her grown children that have also been sapping my uncle for years for money  every month. One in prision and the other left all of her small kids with her husband while she flew off to Switzerland to be with someone that she met on the internet a few years back. He has also been sending them money all this time each month. My aunt never wrote out a check nor did she even know how much he always had she says, which that is very hard to believe, just saying!

T10-R14 in Louisiana seems to be in line with that production and the heart of Haynsville through DeSoto into RR Parish.  Am I mistaken, or does that line up?

CXPO is a tiger getting ready to run. These guys issued this report earlier this week, very bullish on energy and CXPO. Nice to see. Now all we need $6 nat gas. Here are their comments: 

*****

Not great news for the auto sector, but higher fuel costs could lead to some exciting technological advances in the future. Am looking forward to seeing the Volt in person, although I have real questions how well it would run in a cold Michigan winter morning.

In the December LSGI Energy Report we discuss:

- The International Energy Agency (IEA) raised global oil demand forecasts
- The implication of the IEA's comments that global production of crude oil peaked in 2006.
- Merger and acquisition activity in the oil and gas sector
- UK Industry Taskforce report on the “Implications of the Gulf of Mexico Oil Spill”
- Two very active shale plays - the Eagle Ford Shale (Texas) and Bakken Shale (North Dakota)
- Triple digit crude oil pricing forecasts for 2011
- Long term weather trends for the winter, and the impact on natural gas usage
- The investment outlook for smaller companies
- Two companies in the LSGI portfolio: GeoResources (GEOI), Crimson Exploration (CXPO) and FX Energy (FXEN)

The Report can be accessed at the following link:

http://www.lsgifund.com/LSGIRMK/Dec_energy.pdf

More real positive commentary on CXPO on the blog of the firm that wrote the report, over the last week a number of positive comments and CXPO 'drivers' that could make this company one to watch, they note the analysts like this company at Pritchard anyway:

 

http://www.lsgifund.com/index_files/Page960.htm

 

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