Bayou Bend Finalizes Gulf of Mexico Farm-out
Bayou Bend Petroleum has entered into a Participation Agreement for oil and gas exploration rights on West Cameron Block 332, consisting of 5,000 acres in the Gulf of Mexico Outer Continental Shelf in the waters off the western Louisiana coast. Bayou Bend will fund 33.33 percent of the costs of drilling the initial well on West Cameron Block 332 to earn a 25 percent working interest in this first well and all future wells located on the block and associated acreage. Bayou Bend's share of the total completion costs of the first well is estimated to be approximately US $4.93 million. The farm-in rights to the West Cameron Block 332 was one of the assets recently acquired from Pearl Exploration and Production Ltd. as announced on May 8, 2007.
The West Cameron prospect will be drilled and operated by Cairn Energy USA, with participation by Callon Petroleum and Challenger. The prospect is a structural pressured Miocene test with strong amplitude and AVO support. The prospect is located at a shallow water depth of approximately 66 feet. Total depth of the well is prognosed at 13,600 feet. The initial well is expected to spud in June 2007. A successful well will be completed and tied into existing infrastructure.
"We have a busy drilling program coming up in the summer with West Cameron Block 332, Mustang Island Block 736, LaPosada and Marsh Island wells scheduled. We look forward to continuing our exploration success and building upon our first discovery at Marsh Island which is currently being tied into production," commented Clinton W. Coldren, President and Chief Executive Officer of Bayou Bend.
Bayou Bend is an oil and gas exploration and production company with a focus in the Gulf of Mexico shallow water shelf area. The Company has lease interests in the State Waters of Louisiana near Marsh Island and owns a 100% interest in several Federal OCS blocks offshore Louisiana and Texas. The Company has an aggressive drilling program planned for 2007 including a minimum of 7 exploration wells.
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