Gas Production to Begin in April from High Island 24-L Discovery

High Island
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Following the discovery of 47.5 MMscf/D of natural gas at High Island 24-L in the Gulf of Mexico and the completion of the flow test, production is expected to commence in April 2007. The deck and facilities are scheduled to be installed at the discovery well in March 2007.

Plans are underway to spud the second well in the program in adjacent Lease No. M-107044, High Island Block 24- L, (N/2 SW/4) in early February 2007, subject to rig availability. Discussions between the Walter Oil & Gas, the operator, and rig contractors are in progress to secure a rig to meet this time schedule.

Assuming the second well is successful, it is planned to tie it back to the original facilities which are engineered to process approximately 80 MMscfD. Production could therefore commence very quickly following completion of the well.

The platform established in 2006, with the bidding of Lease No. M-106410, High Island Block 24-L (S/2 SW/4) and the subsequent drilling of the discovery well and the acquisition of three contiguous blocks, is now set to mature in 2007 into an exciting commercial development, to underpin Entek Energy's other exploration activities in the Gulf of Mexico.

Partners in this block are Walter Oil & Gas as operator and Entek Energy.

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