Signature E&P announced an update on the progress of the Company's 25% working interest in ten off set wells located in Fayette and Macon Counties of Illinois. The operator said it is in the process of completing the lease and expects to begin drilling in the third quarter of 2010.
"We are pleased to report our operator is moving forward with the leasing process to secure our entry into a well-known petroleum
prospect in the Illinois Basin," said Steven Weldon, Chairman and CEO of Signature Exploration and Production Corp. "To-date, 30 oil
productive reefs have been discovered at an average depth of 2,296 feet in the Basin. These wells average 3,834,025 barrels of oil. At
today's prices ($70), a well would have a production value of approximately $268 million. Drilling wells in this area also are typically low cost due to the favorable leasing terms and the shallow depth of the wells. We are looking forward to participating in a near-term profitable drilling structure beginning in the third quarter of this year."
Plans are to shoot 3D seismic on the acquired leases in conjunction with seismic option agreements in order to confirm subsurface
structures. Confirmation of structures will be followed by drilling. Targets range in depth from 2,000' to 4,000'. According to a 2007
U.S. Geological Survey assessment of the Illinois Basin, the estimated quantities (mean) of undiscovered, technically recoverable
oil and gas resources are as follows: 214 million barrels of oil; 4.65 trillion cubic feet of natural gas, and 24 million barrels of natural gas liquids. This assessment included areas in the States of Illinois, Indiana, Kentucky, Missouri, Ohio, and Tennessee.