Clayton Williams Energy to Drill 2nd Well on Fluer Prospect

Plaquemines Parish
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Clayton Williams Energy has successfully completed the State Lease 17378 No. 1 (Fleur) in Plaquemines Parish, La., in a middle Miocene sand in intervals between 14,326 feet and 14,344 feet.

The well was completed as an oil well and tested at an average of 307 bopd and 400 mcfpd with a flowing tubing pressure of 1,831 psi. The Company expects the well to be on line in the fourth quarter of 2004 after completion of production facilities. More production history is needed before the Company can make an informed estimate of this well's ultimate production and reserves.

The Company also announced that it had spudded the State Lease 17376 No. 1 (2nd Fleur) to test for middle Miocene sands that had hydrocarbon log shows in Fleur No. 1. The Company believes that Fleur No. 2 will encounter these sands in a more favorable structural position. The bottom hole of this well is projected to be 1,700 feet from Fleur No. 1. Drilling operations should be completed during the third quarter of 2004.

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