At Deep Lake No. 1, also as previously announced, drilling has been completed to the target depth of approximately 13,600 ft., and the well has recently been completed. This well is also waiting for a pipeline connection that was delayed as a result of Rita's impact on the area. Aztec notes that the well is ready to produce, and it has been informed by the operator that Deep Lake No. 1 will be brought on-line at the earliest possible time. Strong gas production is projected from Deep Lake No. 1.
Aztec also notes that the South Deep Lake Well suffered an interruption to drilling operations due to storm surge and winds from Hurricane Rita. The operator has been able to obtain the use of a temporary rig for a limited period and drilling is currently ongoing. As the drilling and results of this well are highly confidential and sensitive, Aztec is precluded by its participation agreement from disclosing any specific information regarding the well.
"While Aztec's interests in the Deep Lake Field have been impacted in the short term by Hurricane Rita, we are pleased to report completion of both the No. 2 and No. 1 Deep Lake wells," said Kirk N. Blackim, president of Aztec Oil & Gas. "Most important is the potential for both of these completed wells as indicated by the operator's projections of strong gas production. We believe that the Deep Lake Field initiative is one of a number of key value drivers for Aztec and its shareholders, and we are focused on supporting the site operator through these hurricane-related delays. We estimate that we will be able to announce more definitive information for the final drilling of South Deep Lake as well as commencement of on-line production of Deep Lake No. 2 and No. 1 in the relatively near future."
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