Bayou Bend entered into a Participation Agreement with PetroQuest Energy, L.L.C., and others to jointly drill and develop Eugene Island Block 164 in the Federal Waters off of the Louisiana coast. The Company will hold a 10.00% working interest position in the Test Well. The operation is expected to qualify for royalty relief on production from depths below 15,000'.
PetroQuest will operate the Test Well to be drilled on Eugene Island Block 164 to a depth of 16,200' MD. The operation is expected to commence in June of 2008.
Bayou Bend is pleased to be a participant in this project that exposes the Company to potential near term reserve and rate growth while it continues to focus on maturing the other opportunities in the Outer Continental Shelf and in the Marsh Island area in Louisiana State waters. It also will look to consummate additional Joint Exploration Agreements during 2008.
Clinton Coldren, President of Bayou Bend, commented, "This exploration prospect is a very good compliment to our Marsh Island core drilling program and we are extremely pleased to be participating with this group of companies in this area."