Clayton Williams Energy has announced the successful completion of the State Lease 18669 #1, an exploratory discovery well on its West Lake Washington prospect in Plaquemines Parish, Louisiana. The well was tested during the fourth quarter of 2008 at a rate of 11 million cubic feet of gas per day and 739 barrels of oil per day at 11,279 psi on a 14/64 choke. The well is expected to go on production by mid-2009, after construction of an 8-mile pipeline. Swift Energy Operating, LLC is the operator and the Company owns a 50% interest in this well.
Clayton W. Williams, Jr., President said, "We are pleased with the initial test, however, sustained production is needed to verify performance."
The Company also announced today that it had temporarily abandoned the Ron Lamb 31A-4-1, a 12,670-foot exploratory well in which the Company owns a 33% non-operated working interest. The well was drilled in the central Overthrust play in Sanpete County, Utah, and targeted the oil-prone Navajo sandstone formation. The Company expects to record a pre-tax charge of approximately $2.6 million related to the abandonment of this well, of which $1.3 million will be recorded in the fourth quarter of 2008, with the remaining $1.3 million to be recorded in the first quarter of 2009. The Company is currently evaluating the impact of the abandonment of this well on its acreage position. The Company expects to participate in the drilling of a third exploratory well in the fourth quarter of 2009 to further evaluate its acreage.
Clayton W. Williams, Jr., President said, "We look forward to drilling this third well which we believe to be a very good prospect with good seismic control."
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
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