Crimson Exploration Announces First Quarter 2011 Financial Results, Borrowing Base Increase, and Provides an Operational Update

HOUSTON--(BUSINESS WIRE)-

Drilling Update

In East Texas, Crimson successfully completed the Kodiak #1 (70.0% WI), in its Bruin Prospect Area in San Augustine County, TX, at a gross restricted daily rate of 8.9 Mmcfepd on a 15/64th choke and 8,833 psi of flowing tubing pressure. The Kodiak was drilled to a total measured depth of 18,366 feet, including a 4,600 foot lateral in the Mid-Bossier Shale. Also, in the Bruin Prospect Area, Crimson successfully completed the Blue #1 (70.7% WI), in the Haynesville Shale, which commenced production at a gross restricted daily rate of 8.3 Mmcfepd on a 14/64th choke and 9,100 psi of flowing tubing pressure. The Blue was drilled to a total measured depth of 18,500 feet, including an approximate 4,500 foot lateral. The successful completions of the Kodiak and Blue wells conclude Crimson’s East Texas operated drilling activity for 2011. As previously disclosed, until natural gas prices rebound Crimson will limit activity in East Texas to extending certain expiring leases, re-leasing certain areas or possible participation in well proposals initiated by other operators in its areas.

In the Eagle Ford Shale, the previously announced Littlepage McBride #1H (53.0% WI) well in Karnes County, TX averaged over 600 Bopd in its first 30 days of production and continues to produce at a rate of 535 Bopd. Based on the success of this well, Crimson is preparing to commence drilling operations on two additional wells, the Littlepage McBride #2H (53.0% WI) and the Littlepage McBride #3H (53.0% WI), with drilling operations planned to begin in July and August, respectively. In southeastern Zavala County, TX, Crimson is currently drilling its first well, the KM Ranch #1H (50.0% WI) below 11,100 feet toward a total measured depth of 12,500 feet, including a 6,000 foot lateral. Crimson owns approximately 5,500 net acres in Zavala County and adjacent Dimmit County, a position that contains an estimated 147 drilling locations.

In Liberty County, TX, the Catherine Henderson B-4 (64.0% WI) was drilled to a total depth of 15,338 feet in the Lower Cook Mountain formation. The well encountered several pay zones in the well with the initial completion expected to begin in mid-May and initial production to follow shortly thereafter. Following the B-4, Crimson commenced drilling the Catherine Henderson A-10 (66.0% WI) and expects completion operations to begin mid-June. This well is currently drilling below 3,500 feet toward a total depth of 13,750 feet targeting the Cook Mountain formation.

In Adams County, Colorado, Crimson is finalizing plans to drill its first horizontal well targeting the Niobrara Shale by the end of the third quarter of 2011. Crimson owns approximately 10,000 net acres, held by production, in Weld and Adams Counties, CO, that contain an estimated 21 gross Niobrara locations throughout approximately 25% of the acreage position evaluated to date.

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