On February 16, 2007, Century Petroleum signed a letter of intent to acquire 8.92353% working interest before casing point on the Shadyside Farm Prospect from Houston Energy, Inc. and Red Willow Offshore, LLC. The prospect is a 3-way highside closure on the Garden City Fault with good 3-D seismic and subsurface control.
The prospect is located close to the analogous 2 TCF Garden City giant field and close to a recent discovery by Petrogulf Corporation immediately downthrown. The initial 16,500 feet exploratory well will target resources P.50 of 50 BCF of which Century Petroleum's net could reach 0.63 MMBOE.
The prospective Miocene horizons are anticipated to be encountered between 15,500 feet and 15,800 feet. If successful, a second exploratory well and additional development wells may be proposed. Drilling costs for the first exploratory well of the prospect are estimated at $8.1 million and $3.6m for completion (100%). Spud date is estimated on late March or early second quarter of 2007.
"The company's management believes the Shadyside Farm Prospect has significant upside potential with P.90 resource numbers of 19.4 MMBOE. In such case, Century's proportionate share of the upside case could reach 1.47 MMBOE. We are very pleased to add this significant exploration opportunity to our growing Gulf Coast portfolio," said James Hersch.
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