Returning to the Source: New Drilling in Texas

Aminex has begun drilling GU #38, its fourth development well in the South Weslaco Field, Hidalgo County, Texas. A rig operated by the Edde Drilling Company has been contracted on a turnkey basis to drill the new well to a depth of 11,000 feet (3,352 meters) and is moving on to location this weekend.

The drilling objectives are the Frio sands deeper than 10,000 feet (3,048 meters), which were not tested by the previous deep well, GU #37. Estimated drilling time is 25-30 days.

The GU#37 was completed and tested in September at a rate in excess of 2.5 mm cubic feet/day after a successful fracture stimulation in the 9,500 feet (2,895 meter) Frio sands.

Aminex has already participated in three wells at South Weslaco as part of an ongoing multi-well development drilling program which commenced in 2005. The initial wells, GU#35 and GU#36, were both drilled to a total depth of approximately 9,000 feet (2,743 meters) and the subsequent GU#37 was the first in the program to test the deeper Frio sands. In all cases logs encountered commercial quantities of gas in multiple formations and all three existing wells are on production.

The joint venture partners have now discovered gas reserves in excess of 20 billion cubic feet in the South Weslaco field. Aminex has a 25% WI in the new well which is being operated by Kaler Energy. Partner interests are: Stalker energy 49%, Activa Resources 25% and Kaler Energy 1%.


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