Greka Spuds Well At Potash

Greka Energy Corporation announced that drilling operations for a 13,000' Miocene test of the Haspel & Davis #1 (HD-1) well in Plaquemines Parish, Louisiana have begun. The well is being drilled up dip in numerous pay zones from 7,700' to 11,400' while designed to test to 13,000' the deeper Tex W series that is productive on the East flank of the field. It is anticipated that drilling will take approximately 30 days and be complete by mid-August.

The rig being utilized is Parker Drilling's inland barge, PD-8B. The well will be directionally drilled beneath a large salt overhang on the southern portion of the Potash Salt Dome and is currently being drilled out from underneath the shoe after 3,500' of surface pipe was set. The offsetting well, OLB B-10, completed in the 10D sand currently produces approximately 3,500 MCFPD. Greka is the operator and owns a 100% working interest. The Potash Field, which Exxon discovered in the 1930's is a salt dome in South Louisiana on the Mississippi River that is south of New Orleans. The field has a total of 132 wells drilled to depths varying from 600' to 14,000' with 21 wells remaining. The spudded well is the first of a series of five new wells planned by the Company to exploit its large, undeveloped reserve base in this field.

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