Petrogen Doubles Working Interest in Emily Hawes Field
|Wednesday, April 13, 2005
Petrogen has acquired an additional 37.5% working interest in the Emily Hawes Field (E.H.) property, which effectively doubles the working interest controlled by Petrogen in the 1,571.5 acres of natural gas leases located on Matagorda Island in the Texas Gulf Coast. Petrogen now controls a 75% working interest and a 58.125% net revenue interest in the field.
"The acquisition of these additional working interests in the Emily Hawes Field project represents another significant strategic milestone for our Company in its development and expansion efforts in the Gulf Coast area natural gas play," stated Sacha H. Spindler, Chairman and Chief Executive Officer. "Acquiring an additional 37.5% working interest in the field increases our net potential reserves to more than 9 billion cubic feet (Bcf) of natural gas. Accordingly, we expect our net revenue from the sale of upcoming gas production from the field will now double."
The additional working interest, combined with Petrogen's recent purchase of the Matagorda Island natural gas transmission pipeline, integrates the Company's strategic plans to fully develop and expand current and future operations and land holdings on Matagorda Island and provides Petrogen greater operational control while deepening its position as a Texas Gulf Coast operator.
"We're very optimistic about the development potential of the Emily Hawes Field natural gas project, and believe it represents excellent investment potential for Petrogen's shareholders while enhancing our portfolio and business model. Additionally, opportunities to expand our participation while galvanizing our objectives in the project further strengthens our ongoing operations on Matagorda Island," concluded Mr. Spindler.
The E.H. property is located approximately 90 miles southwest of Houston, Texas within the prolific oil and gas producing Miocene-Frio trend of the onshore and offshore Texas Gulf Coast. At Emily Hawes Field, favorable gas production test rates have been established in the Miocene Sands from the Company's first successful gas well, the EH#3A wellbore, which it anticipates will be tied in to the Company's recently purchased natural gas transmission pipeline for production in the near future. Petrogen plans to continue development of this and additional Miocene pay sands as the Company expands its ongoing operations in the field through the drilling of infill and step out locations.