EnerGulf Resources Drills Duster in Texas

Webb County, Texas
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EnerGulf Resources has been notified by Killam Oil Company that the Longoria #1 in Webb County, Texas, has reached total depth and electric logs have been run by Halliburton. Log interpretation indicates that there is not a sufficient presence of hydrocarbons at this location and operations have commenced to plug and temporarily abandon the well.

Further evaluation will be conducted to determine the feasibility of drilling an offset well to test the up dip potential of possible reservoir quality sands seen in the well at the deeper objectives. Directional drilling from the Longoria #1 has been determined to not be feasible at this time due to mechanical risks.

Commenting on the results, Jeff Greenblum, Chairman of the Board of EnerGulf, stated, "While we are disappointed that the Longoria #1 will not be completed and that directional drilling is currently not considered an option for this well, we have seen reason to be encouraged for the project and look forward to consulting with Killam to determine the next course of action."

The Longoria #1 was drilled to test a 3D confirmed high-side fault closure with multi-zone targets in the Wilcox formation. The Longoria Prospect is located in a very prospective area of South Texas with highly prolific analogous production nearby. Nearby analogous gas fields for the targeted formations report reserves of 24-800 BCFG.

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