The Company is also preparing to plug and abandon the SL 17636 #1 (Natalie), a 13,268-foot exploratory well in Cameron Parish targeting the Planulina formation. The Company will record a pre-tax charge of approximately $3.1 million related to the abandonment of this well, of which $2.5 million will be recorded in the third quarter of 2005 and $600,000 will be recorded in the fourth quarter of 2005.
The Company is continuing its drilling operations on the Ransom #1 (Keck), a 14,000-foot exploratory well in Acadia Parish targeting the Nod A sand formation. To date, the Company has incurred approximately $2.2 million in drilling costs net to its interest.
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