GulfWest Drills Its First Horizontal Well in Glen Rose Fld

Grimes County, Texas
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GulfWest Energy has finished drilling its first horizontal well in the Glen Rose natural gas formation in Grimes County, Texas. The Hassler #1h well was drilled to a total depth of 14,063 feet. In this area of East Texas, the Glen Rose formation is typically a natural gas-bearing, fractured carbonate rock located approximately 11,200 feet below the surface. GulfWest re-entered a well previously abandoned by a former operator, deepened the well vertically 1,200 feet and horizontally drilled 2,200 feet in the Glen Rose formation.

While drilling the horizontal section of the well, the Company encountered a number of fractures containing natural gas. Horizontal wells of this type are typically drilled in a controlled fashion allowing the natural gas to be brought to the surface and flared during drilling, a technique that reduces damage to the reservoir from the drilling process.

GulfWest is currently completing the Hassler #1h well and plans to have the well on-line in early January 2005. The drilling rig will move immediately to drill a second well in the area. GulfWest has a 75% working interest in the field and its partners, Summit Investment group, have a 25% working interest.

The re-entry of the Hassler #1h is another example of GulfWest applying various enhancement technologies to develop previously abandoned domestic natural gas and oil reserves. The Company plans to continue these efforts in 2005.


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