Bering will begin drilling operations this week on its South Texas prospect. Bering will re-enter an existing well bore and perforate the Yegua formation which was not originally targeted in this well. This approximate 500 acre prospect has multiple drilling locations and will target the Yegua and Frio formations at various depths and is estimated to have over $9 million in potential gross reserves based upon the current price of oil and gas and assuming all wells are drilled and successful. Bering will retain a 50% working interest in this prospect.
"The well bore that we are re-entering was initially drilled targeting a much deeper zone and was never tested for the Yegua and Frio zones that have historically been productive in this area," stated Steven Plumb, VP of Finance of Bering. "We have ordered the pipe and requested the production unit for Tuesday of this week. We expect to begin oil production in the next few weeks if our completion is successful."
Bering has elected to employ an additional unique radiometric technology to further delineate its previously announced Eagleford prospects. Bering believes this additional testing will further reduce its drilling risks and has put its Eagleford operations on hold until such testing can be completed.
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