Southern Star Energy has successfully drilled and logged the targeted Cotton Valley interval in its A.S. Burt 20-1 Well with positive results. The well reached planned intermediate pipe depth of 9,530 feet on November 10, 2008.
Subsequent to logging the Cotton Valley and shallower horizons, 7-inch casing was set at 9,530 feet and the well is drilling ahead to test the Haynesville Shale at a planned total depth of 11,300 feet. This well is strategically located in the southwest section of the Company's Sentell Field in Bossier Parish, Louisiana and is designed to further delineate both Cotton Valley and Haynesville Shale potential. The A.S. Burt 20-1 Well is the third well in the Company's 2008 development program and the second Haynesville Shale vertical test well in the Sentell Field planned this year.
Wireline logging and mud log shows indicate the A.S. Burt 20-1 Well encountered 54 feet of net effective gas pay in the Cotton Valley Formation. Notably, there are a number of pay sands correlative to the pay intervals in the Company's existing wells, which indicates the 20-1 well may produce similar results to the other Cotton Valley wells drilled in the Sentell Field.
The A.S. Burt 20-1 is the Company's eighth consecutive successful Cotton Valley well in the Sentell Field. Each of the Company's eight Cotton Valley wells has similar log characteristics. Five of these wells are currently flowing into sales lines and generating cash flow. The Company's sixth successful Cotton Valley well, the Cash Pointe 30-1, is currently awaiting pipeline construction.
After encountering excellent pay intervals in the Cotton Valley, the seventh well, the Atkins-Lincoln 17-2, was deepened into the Haynesville Shale, where it encountered reservoir rock with encouraging properties. This well is currently undergoing extensive laboratory and petrophysical analysis preparatory to a completion in the Haynesville.
David Gibbs, the Company's President and Chief Executive Officer, said, "Our enthusiasm about the Sentell Field and our Cotton Valley play continues to increase with each well we drill. The well logs and formation evaluation for A.S. Burt 20-1 are correlative to our previous successful wells in the play. The preliminary results from the A.S. Burt 20-1 Well suggest that commercially economic portions of the Cotton Valley Sands extend into a greater portion of our leasehold in the Sentell Field."
Gibbs continued, "The A.S. Burt 20-1 is our second test of the Haynesville Shale, following on our successful initial Haynesville test in the Atkins-Lincoln 17-2 in October. We believe this test will further define the presence and extent of pay in the Lower Bossier/Haynesville within our Sentell Field leasehold, representing additional valuation upside for our Company."
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