Texhoma Reports Successful Recompletion at Intracoastal City

Vermillion Parish, Louisiana
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Key Operating Co. has advised Texhoma Energy, Inc. that the "SL 16995 No. 1" well in the Intracoastal City Field, Vermilion Parish, La., has been successfully recompleted. The gas field, also known as the Little White Lake property, was producing from three wells before two wells started to produce too much water with the gas in the third quarter of 2006.

The No. 1-well was reperforated in the Operc-2 Sand at 11,600 feet and produced 146 barrels of condensate (oil), 801 thousand cubic feet of gas, and 0.2 barrels of water at a flowing tubing head pressure of 3290 psi on an 11/64 choke over a 21 hour test-period before the well was put back on production. The condensate or oil content of the gas is very high and could well indicate an oil-leg to this reservoir.

The workover rig in currently moving to the "SL 16995 No. 3" for a recompletion of that well to the Lower Polaris B sand at 12,500 feet.

The 8% working interest in the Intracoastal City Field was acquired by Texaurus Energy, Inc., a wholly owned subsidiary of Texhoma, in April 2006. With the two workovers it is expected that production from the field will be restored to former levels.


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