Stallion will commence drilling 16 new exploration and development wells in Mississippi and Louisiana. The company has decided to aggressively accelerate the drilling campaign due to the recent successes experienced in Mississippi. To date, it has drilled five wells with two additional well locations to be drilled within the next two weeks. Of the five wells drilled to date, four have been completed as natural gas wells.
The program demands that Stallion's operators in Mississippi and Louisiana will drill two to three wells per month commencing July 2007. The first 10 of 16 locations have been selected and all necessary land agreements are now in place. The balance of the well locations will be determined over the course of July and August drilling once the first 6 drill results have been analyzed. The company's capital budget calls for 23 wells to be drilled by the first quarter of 2008. Results on a well-by-well basis will be released once drilling and logging data becomes available. All new wells in this program are within the pipeline service area currently under the control of the company.
"The use of seismic 'Bright Spot' technology has been extremely successful and critical to identifying the Frio sands oil and gas targets," said Christopher Paton-Gay, Chairman of Stallion Group. "The technology provides the company with a unique tool to identify gas and oil reservoirs and to delineate the reservoir geometry and limits. Utilizing these critical factors has improved reserve estimates and the geologic success ratio. The results of 'Bright Spot' prospecting have yielded an outstanding geologic success rate so far, of more than 75% for Frio exploratory wells drilled utilizing this technique."
Stallion holds a 30% gross interest in this AMI (area of mutual interest) in Mississippi and Louisiana.
The Stallion Group is an independent oil and gas company focused on developing proven energy rich areas of North America.
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