Two other 100% owned exploratory wells drilled in October, the State Lease 16656 #1 (Whiskey Bay) and the State Lease 17639 #1 (Neva) were nonproductive. The Company will expense all costs associated with the drilling of these wells, which will result in a pre-tax charge of approximately $3.2 million in the fourth quarter of 2003.
The Company is currently drilling two additional exploratory wells in South Louisiana. The State Lease 17378 #1 (Fleur) in Cameron Parish will test various intervals to an estimated depth of 18,000 feet. The Company owns a 67% working interest in this well to casing point and a 75% working interest thereafter. The State Lease 17613 #1 (Top) in Jefferson Parish is owned 100% by the Company and will be drilled to an estimated total depth of 13,200 feet.
The Company has also participated in three non-operated wells in an offshore exploration program in the Breton Sound area of Plaquemines Parish. One well is currently producing, one is being completed and one is being drilled. The Company owns a 10% working interest in these wells.
The Company reported that it has now drilled all three of the developmental wells in its Romere Pass acquisition to which proved undeveloped reserves had been assigned. The Romere Pass #113, which was completed in the 2,100-foot sands, and the Romere Pass #117, which was completed in the 7,700-foot sands, are currently producing. The Romere Pass #115 is being completed in the 10,300-foot sands and should be on production in November. The Company expects that production from these three developmental wells will be less than the estimates included in its year-end engineering report. More production history is needed to fully evaluate these wells. There remain two exploratory prospects in the Romere Pass area to be drilled. The Company owns 100% working interest in the Romere Pass acreage.
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