Clayton Williams Energy Updates Operations

Clayton Williams Energy reports that completion attempts in intervals below 16,000 feet on the State Lease 17378 #1 (Fleur) in Plaquemines Parish were unsuccessful. The Company will now attempt completion in a series of middle Miocene sands in intervals between 14,170 and 15,900 feet. To date, the Company has incurred drilling and completion costs of approximately $11.2 million, net to its working interest. The Company will record a pre-tax charge during the second quarter of approximately $8.6 million related to the lower formation.

The Company has run production casing and perforated the Louisiana Fruit Co. #2 in Plaquemines Parish, the second well on the Tiger Pass prospect. As previously reported, the Company has run production casing in the Louisiana Fruit Co. #1. Plans are to complete both wells as duals producing from two intervals each, which will allow for the simultaneous production of four intervals. Logs indicate a total of 116' of gross and 50' of net pay with indicated porosities in excess of 30%. Reservoir characteristics are excellent with permeabilities of up to four darcys. Oil saturations are confirmed from both log and core analysis. The Company owns 100% of the working interest in these two wells.