Black Elk Energy, a newly formed, independent oil and gas company, announced today the successful results from a field rejuvenation and workover program in the South Timbalier Block 8 Field (ST8), located in Louisiana state waters. Black Elk Energy owns 100% interest in the ST8 field.
After a $5 million investment in facility modifications and well workovers, production has been doubled to six & one-half (6.5) MMcfd of gas and 300 bopd. Currently operating 4 wells, the field development program has included recompletion work that exploits what were sunset wells. Reentry on 4 wells was performed and new zones of production were established. The work scope primarily involved exploiting identified pay additions and water shut-off procedures on selected wells after a surveillance program identified extraneous water sources. A fifth (5) well is presently in the planning stages and is expected to add four (4) MMcfd of gas and 200 bopd.
"This is the first major field redevelopment for Black Elk Energy, and we are proud to bring these tremendous results to our investors," says John Hoffman, President and CEO. "The success at ST8 demonstrates the effectiveness of our strategy, which is identifying and rejuvenating what are otherwise viewed as sunset properties. There are additional drilling opportunities at ST8 that will be undertaken as part of a Phase 2 redevelopment program later in 2008 and into 2009."
Black Elk Energy, LLC is an independent oil and gas company headquartered in Houston, Texas. Founded in 2007 by seasoned industry executives, Black Elk Energy is dedicated to create exceptional returns in oil and gas through acquisition and exploitation. Black Elk Energy has a specific competitive geographic focus within the Southern Gulf Coast states. Within the geographic area, their technical focus is on low risk reservoir exploitation opportunities and operational improvements.