Credo Increases Drilling Budget for 2011
Credo outlined its 2011 drilling plans and capital investment budget.
$15 MILLION COMMITTED FOR FISCAL YEAR 2011 - VERTICAL AND HORIZONTAL OIL DRILLING PLAYS
Credo's 2011 exploration and development capital investment is targeted to be approximately $15,000,000, about 150% greater than 2010. A total of 52 gross, 25.7 net, wells are currently planned, representing a 142% increase over the 10.6 net wells drilled in 2010. Vertical oil wells in central and western Kansas and southwest Nebraska will comprise approximately two-thirds of the exploration budget, with the other one-third allocated to horizontal oil drilling in the North Dakota Bakken and Texas Panhandle. Thirty of the fifty-two wells will be company operated, a six-fold increase over the prior year. The company expects to fully fund its drilling schedule from operating cash flow and cash on hand.
Marlis E. Smith, Jr., Chief Executive Officer, stated, "I am pleased to announce by far the most aggressive drilling program in Credo's history. This is the time to capitalize on oil drilling, as oil currently enjoys a nearly four to one value advantage over natural gas. Over the past several years, Credo assembled significant undeveloped leasehold positions in promising plays ranging from vertical drilling for shallow oil in Kansas and Nebraska to deep horizontal drilling in North Texas and the North Dakota Bakken. Now we intend to ramp up our oil drilling to exploit the price premium that oil has over natural gas."