Second Gulf of Mexico Well Flows at 50.5 MMscfD

Earlier this year, Entek announced that the High Island Block 24- L, (N/2 SW/4) #1 well ("the 2nd well") spudded on February 14, 2007, approximately 1,090 meters northwest of the discovery well, High Island Block 24-L, (S/2, SW/4) #1 ("discovery well").

Early April Entek said the well had "encountered strong hydrocarbon shows over an approximate 146.3 meter (480 feet) gross sand interval".

The well has now been successfully completed after reaching TD of 4,311.5 meters (14,146 feet), and perforated over approximately 140 feet. A flow test was conducted on April 20, 2007.

The stabilized flow rate was 50.5 MMscfD on a 32/64" wellhead choke, with approximately 384 barrels of condensate per day.

Last October the discovery well, High Island Block 24-L, (S/2 SW/4)#1, located in 37 feet of water on the S/2 SW/4 of High Island Block 24L, Texas State Waters Offshore had been successfully completed and a flow test revealed a flow rate prior to shut in of 47.5 MMscfD on a 45/64" wellhead choke, with approximately 6 barrels of 45.9 API gravity condensate per million cubic feet of gas (312 barrels of condensate per day).

By way of background, Entek and its partners participated in successful bids at the State of Texas Lease Sale held on October 3, 2006 on three offshore tracts that are ontiguous to the discovery block Block 24-L, (S/2 of SW/4).

Block 24-L, MGL 206 (N/2 of SW/4)
Block 25-L, MGL 208 (S/2 of SE/4)
Block 32-L, MGL 210 (N/2 of NW/4)

Entek now holds a 5% working interest in 2,880 acres around the discovery well.

Production is scheduled to now commence in July 2007, following delays in completion of pipelines and tie-in to third party gas carrier pipelines".

The high deliverability of the 2nd well, High Island Block 24- L, (N/2 SW/4) #1, will now be evaluated within the scope of the proposed production plans. The overall planning may require modifications to handle the potentially larger combined production stream.

This result is a significant outcome for the joint venture. The 2nd well, High Island Block 24- L, (N/2 SW/4) #1 has exceeded the outcome of the discovery well. The better sand quality has resulted superior deliverability.

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