Clayton Williams Energy has provided an update on the drilling status of two Bossier wells.
The Company reported that it is abandoning the Claudia's Education Trust 33-1, a 17,000-foot exploratory well on its Winnsboro prospect in Richland Parish, Louisiana. This well was drilled to a depth sufficient to test the expanded Bossier formation, but the targeted reservoir rock was not present in this area. The Company will record provisions for dry hole costs and impairment expense totaling approximately $20 million in the fourth quarter of 2008 related to the abandonment of this well and the impairment of approximately 73,000 net acres in the Winnsboro prospect.
The Company is continuing drilling operations on the Sunny Unit #1, a 20,000-foot exploratory well in Burleson County, Texas targeting the deep Bossier formation. The Sunny Unit #1 is being drilled on a 3D-defined prospect that is on trend to and 20 miles southwest of the Company's Lee Fazzino #2 well which has produced 34.6 Bcf of natural gas since first production in 2001. The well has been drilled to a total vertical depth of 15,600 feet, and the Company expects to complete drilling operations late in the first quarter of 2009. To date, the Company has incurred drilling costs of approximately $11.6 million on this well (100% working interest).
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