The Company announced that the high risk, high potential onshore Barracuda prospect in Terrebonne Parish drilled to a total depth of 16,503 feet, did not encounter commercial hydrocarbons and is being plugged and abandoned. The Company held a 33% working interest in the well. In addition, the Company announced that two moderate potential wells, one on the Shelf in South Pass 38 and one onshore in Terrebonne Parish, did not encounter hydrocarbons and were plugged and abandoned. The Company owned 75% and 33% working interests, respectively, in the two wells. EPL expects to recognize a total of approximately $11.1 million in exploration expense in the first quarter of 2006 related to these three wells.
The Company is currently drilling a moderate risk, moderate potential exploratory well on the Shelf at West Cameron 252, with plans to commence 16 more exploratory tests before the end of year, including five additional high potential wells. The Company is also drilling an acceleration well at South Timbalier 46, based on its recent success in the South Timbalier 46 #3 well, in order to fast track production from this 100% EPL owned discovery area before mid year. As discussed during the Company's most recent earnings conference call, the high potential South Timbalier 46 #3 well, which successfully found discovery sands in addition to its intended development objectives in the shallower section of the hole late last year, was deepened and discovered four additional pay sands with 100 feet of apparent pay during the first quarter, 2007. The #3 well is scheduled to begin testing the deeper pay potential during the second half of 2007.
Founded in 1998, EPL is an independent oil and natural gas exploration and production company based in New Orleans, Louisiana. The Company's operations are focused along the U. S. Gulf Coast, both onshore in south Louisiana and offshore in the Gulf of Mexico.
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