EPL also announced that the Eugene Island 145 #1 exploratory well was a dry hole. The well penetrated sands in the target interval, but the sands were wet. The well has since been plugged and abandoned. EPL holds a 33% working interest in the project. The remaining working interests are held by private companies. EPL expects to realize a net dry hole cost of approximately $1.4 million on the project.
Regarding the success at South Timbalier 41, Richard A. Bachmann, EPL's Founder, Chairman, President and CEO, remarked, "We are very pleased with the results of this well. We acquired this lease in the March 2003 lease sale and were able to successfully drill the prospect in the same year. Since the block is contiguous to one of our core properties, South Timbalier 26, we will be able to leverage infrastructure on that block for production. With initial production expected near mid-year 2004, this well shows how quickly and effectively EPL can drill and produce a well after acquiring acreage."
EPL is currently drilling five other exploratory prospects on the following OCS blocks: East Cameron 378, Eugene Island 142, Eugene Island 277, South Timbalier 180, and High Island A-6. The Company also said that it expects production for the fourth quarter to fall between 22,100 and 22,600 barrels of oil equivalent (Boe) per day. This range is within the guidance range issued earlier for production, which was 22,000 to 24,000 Boe per day.
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