Metro Energy Drills 2nd Well with Verdisys Technology

Metro Energy Group has successfully recompleted its Glassell F-5 well in the Caddo Pine Island Field north of Shreveport, Louisiana using Verdisys Radial Drill Optimization (RDO) technology. After RDO was applied, the well was circulated and cleaned with water and the Perma-Swab(TM) automated lift system was installed. The well is currently producing 10 barrels of oil per day with a 75-per cent water cut -- grossing more than 40 barrels of fluid per day. The current oil production is expected to increase as the water lost into the reservoir during drilling and cleaning is produced from the reservoir. The well was previously shut-in as an uneconomical producer.

"We are very encouraged by this significant increase in production," said Rick Holcomb an officer of Metro Energy Group. "The combination of the Verdisys RDO technology and our Perma-Swab(TM) system appears ideal for this field. Problems generally associated with conventionally producing the Annona Chalk formation include low permeability, paraffin build up and little or no bottom hole pressure. Verdisys RDO technology helps to increase overall exposure to the formation through multiple laterals which increase flowing capabilities. Perma-Swab(TM) allows production directly from the casing which virtually eliminates paraffin problems and efficiently removes all fluid from the well bore. We can now extract oil from the field which would not have been commercially feasible under conventional methods."

Verdisys drilled a total of 10 horizontal laterals, six extending beyond 300' from the well bore, into the Annona Chalk formation at depths from 1,433 to 1,550 feet. The laterals significantly increase the effective well bore drainage area in this low pressure, low permeability reservoir.

"We believe these results are a positive step in establishing the effectiveness of our RDO technology and providing producers with a cost effective opportunity to increase and extend the life of existing fields," said David Adams, President and COO of Verdisys.

The results from this well follow the results of the Glassell F-6 well that was drilled using the RDO technology in September 2003. For that well, oil production increased from 1/4 barrels of oil per day (b/d) to an initial 20 b/d after the Verdisys RDO process was completed. The well then leveled off at a sustained 12 b/d for a period of six months before declining to a current production of approximately 5 b/d.