Vintage Sees Success in Yemen and the Gulf of Mexico

Vintage Petroleum reports that the An Nagyah #12 well in the Republic of Yemen has tested light (43 degree API) oil from the sub-salt Upper Lam formation. The well is the second horizontal well drilled in the field and is also the eighth consecutive successful well drilled at the company's An Nagyah field this year.

The An Nagyah #12 well was drilled horizontally to a total measured depth of 6,791 feet (2,070 meters), which is equivalent to 3,468 feet (1,057 meters) of true vertical depth. Electric log analysis indicates a gross interval of 2,743 feet (836 meters) that is oil bearing in this well. The interval was tested at a stabilized flow rate of 4,801 barrels per day of light oil and 2.6 million cubic feet of natural gas per day on a one inch choke. Production in the An Nagyah #12 is significantly improved due to the lateral penetration of the reservoir compared to that achieved to date with vertical wells. No formation water was produced during the test period. With the addition of the An Nagyah #12 well, combined gross productive capacity from the An Nagyah wells will be approximately 12,000 barrels (6,240 net) of oil per day.

With testing completed at the An Nagyah #12 well, the drilling rig is currently moving to the An Nagyah #14, a vertical well to be located on the southern flank of the An Nagyah structure. The purpose of the An Nagyah #14 will be to test the productive capability of the south fault block of the An Nagyah structure. Upon completion of the #14, an exploration well is planned for the company's Malaki prospect located to the southeast of the An Nagyah field. Concurrently, the company has recently moved a workover rig to the An Nagyah #2 well to seal off the gas cap perforations and complete the well as a producing oil well. Subsequently the rig will be moved to the Harmel #2 well in order to undertake completion and stimulation activities to prepare the well for a long-term pilot test. If successful, the results will be used to determine the next step in the development potential of the Harmel discovery.

All of An Nagyah's production is currently being trucked to a nearby facility until the permanent pipeline and processing facility are completed in the second quarter of 2005. The current trucking capacity is approximately 6,000 barrels of oil per day (3,100 net). The permanent processing facility is being designed to process 10,000 gross (5,200 net) barrels of oil per day. With productive capacity currently exceeding 10,000 barrels per day, the company is evaluating the possibility of expanding initial processing capacity at the plant.

United States

Production was initiated this week on the Main Pass 112 #1 S/T well in the company's Main Pass 116 complex, offshore Louisiana. This well was drilled in the third quarter to a previously untested seismic anomaly and encountered 49 feet of natural gas pay in the BM 5.0 Miocene sand, the current producing interval. Net daily production rates are currently 4.6 million cubic feet of natural gas (MMcf/d) and 33 barrels of condensate on a 16/64 inch choke with 2,850 psi flowing tubing pressure. The flow rate is being increased slowly with the expectation of a final net stabilized rate of at least 8 MMcf/d. In addition, two shallower zones consisting of a total of 27 feet of additional gas pay were completed but remain behind pipe and untested at this time. The well is located in 60 feet of water approximately 85 miles southeast of New Orleans. Vintage holds a 100% working interest in the well. The success of this well along with other wells brings the productive capacity at our Main Pass 116 complex to over 15 MMcf/d.