Clayton Williams Energy has terminated drilling operations on the Miami Corp. #2, an exploratory test well in the Bayou Sale field on its Liger Prospect in St. Mary Parish, Louisiana. The well targeted multiple lower Miocene sands which were encountered at depths ranging from 15,928 feet to 16,916 feet. Based on well logs, the Company has determined that no commercial quantities of hydrocarbons exist in these sands and that the well will be plugged and abandoned.
The Miami Corp. #2 well was a replacement well for the Miami Corp. #1 that was abandoned in May 2009 after encountering mechanical difficulties. Since the accumulated drilling costs of both wells were capitalized pending the results of drilling activities on the Miami Corp. #2 well, the Company will record a pre-tax charge of approximately $18.5 million, net to the Company’s interest, related to the abandonment of these wells during the third quarter of 2009.
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