Teaching an Old Zone New Tricks: Production Starts at Pelahatchie

Pelahatchie Field, Mississippi
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TransAmerican Energy Inc. has been advised by the Operator that it has completed the recently drilled Max & Martha Gill #1 well in Pelahatchie Field in the prolific 11,300 ft. Hosston Formation. Testing with swab rig initially resulted in estimated fluid entry rates exceeding 200 barrels of oil per day, which is the indicated rate that the well could be pumped. Placed on a 12/64s size wellhead choke, the well has been flowing naturally at the rate of 80-115 barrels of oil daily with no formation water indicated and flowing tubing pressure of 100 to 180 psi. Presently the drilling location is having all drilling mats, etc. removed and the site graveled so that a pumping unit can be installed once the well has finished flowing naturally.

The Operator advised that, drilled to 11,500 ft. subsurface in Sec 7 T5N R5E, the Gill well encountered numerous potential productive zones beginning at the Tuscaloosa depositions in the 7000 ft. depth through the multiple Hosston formations at the 11,000 ft. zones. These stacked "pay zones" will now become future offset developmental drilling targets.

The particular zone presently perforated yielded over 340,000 barrels in the 1960's from three adjacent wells to the north and west, and considerable oil from other wells in the field. The oil is high gravity (50 degrees) sweet crude which brings top product prices in the market, presently $90 to $100 per barrel.

Given the positive results of the Max and Martha Well, the Company has notified the Operator that it intends to exercise its option to participate in the next two wells by paying 50% of the cost of drilling and development to casing point, for a 25% working interest in those two wells. All other costs to completion will be borne by the Operator.


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