Venus Exploration Adds to Property Portfolio
Venus has acquired oil and gas properties and leases covering approximately 18,900 gross acres (14,300 net acres) in its core areas in Texas and Louisiana. Financial details were not disclosed. The properties and leases are centered in the Yegua Trend (one development and three exploratory projects) of the Gulf Coast of Texas and Louisiana, the Bossier/Cotton Valley Trend (two exploration prospects) in East Texas, and in Hansford County (low-risk development) in the Texas Panhandle. The company's working interest varies from 25 percent to 100 percent. The company anticipates drilling wells on these projects during the last half of 2001 and in 2002.
Venus concentrates on two primary focus areas, the Expanded Yegua Gulf Coast Trend and the Bossier/Cotton Valley Trend. The company plans to drill eight wells in its 2001 and 2002 drilling program and the unrisked reserve exposure to the company's interest in these prospects is estimated by the company's technical staff to be in excess of 400 Bcfe. Unrisked reserve exposure is defined as the gross potential oil and gas reserves of a prospect before applying a risk factor. The company is confident it has the financial capacity to execute its drilling program through a combination of operating cash flow, new joint venture partnerships and its recently completed credit facility with Hibernia National Bank.
One of the development projects in which the company acquired acreage is in the Expanded Yegua Trend, located in the Upper Texas Gulf Coast near the Constitution Field in Jefferson County, Texas, where Venus is already successfully developing another Expanded Yegua Field. Both of these development projects are utilizing 3-D seismic to image prospective drill sites. Thus far in 2001, the company announced two new well completions in the Constitution Field (15 percent working interest). These wells each had initial gross production rates averaging 3.3 MMcf of gas and 500 barrels of condensate. The company spud the Maness No. 1 well on July 18, the fifth well Venus has drilled in the Constitution Field.
In the new Expanded Yegua development project, the company recently increased its ownership from 20 percent to 50 percent through a purchase of working interests from a large, publicly traded independent. Venus expects to commence drilling its first operated well on the 4,600-acre lease block in the fourth quarter of 2001. These two active Expanded Yegua field development projects are located 10 and 12 miles southeast of the Vidor Ames Field in Orange County, Texas, a gas field producing from the Expanded Yegua formation first discovered by Venus' technical team.