Mission Resources Logs Pay in Several Core Areas

Mission Resources reports the results of several successful projects that are located in Mission's core areas, including the Gulf Coast and the Permian Basin.

"The recent successes in our capital program are very exciting and provide a great platform for future development opportunities," said Robert L. Cavnar, Chairman, President and Chief Executive Officer. "The results of our early 2005 drilling and development activities continue to validate our disciplined approach to opportunity assessment and risk management."

From January 1 through March 31, 2005, Mission has participated in the drilling of 28 development wells and five exploratory wells with 27 wells currently in progress (23 development and four exploratory). Some highlights regarding these projects are as follows:

  • Testing continues at the Dehnert #1 in our Lions Wilcox field in Goliad County, Texas. The Corona 3 Sand is set to be perforated and then followed by completion of the primary objective that logged 67 net feet of pay similar to the zone producing in the Weise #1. Mission holds a 35% working interest and will be the operator after completion.
  • Two additional Lions Wilcox field wells, the Buckner Foundation #1 and Weise #2, have been drilled to total depth and logged. We are running production casing to 15,700 feet at the Buckner Foundation #1 and to 16,000 feet at the Weise #2. Completion operations on both of these wells, which logged pay in several Lower Wilcox sandstones in the interval from 13,600 feet to 15,200 feet, will commence in April and May. We anticipate that these Lions Wilcox field wells will have substantially similar results to the Weise #1, which flowed at an initial gross rate of 14.5 million cubic feet of gas per day ("MMcfg/d"). A third well, the Simmons #1 is currently drilling at 13,149 feet. Mission holds a 35% working interest in the Simmons #1 and the Buckner Foundation #1 and a 31.5% working interest in the Weise #2.
  • In Jefferson County, Texas, we drilled the Iles #1 to 11,515 feet to evaluate the Yegua EY formation. This well has previously found approximately 60 feet of apparent pay in two intervals from 10,400 feet to 10,700 feet. We are currently waiting on regulatory permits and evaluating completion alternatives. Mission holds a 70% working interest in this prospect.
  • The Mission operated High Island Block A-553 #4 well which was drilled to a total depth of 5,500 feet, has been completed in the "5500 Foot Sand" and tested at restricted rates of up to 3 MMcfg/d. We estimate that once the well is turned to sales, it will produce at approximately 5 MMcfg/d, gross. We expect that the control umbilical and flowline will be installed at this subsea completion in mid-summer. Mission holds a 36% working interest in this well.
  • At our North Leroy field in Vermilion Parish, Louisiana, the Ledoux #1 was drilled to a total depth of 12,500 feet and production casing has been set to bottom. This well found 40 feet of net pay in the Marg howeii sand that has previously produced 4.5 Bcfe from the Mission LeBlanc #1 completed in October 2003. The Ledoux #1, in which Mission holds a 77% working interest, is expected to be completed later this month.
  • In the Jalmat field in Lea County, New Mexico, we have completed work on 15 wells in our recompletion/refracture program to the Yates / 7-Rivers formations. Thirteen of these wells are currently on production for a combined gross production rate of approximately 1.344 million cubic feet equivalent per day ("Mmcfe/d"). The remaining two wells are being prepared for sales. One additional well will be recompleted to the Yates / 7-Rivers during the second quarter of 2005. Based upon the success of this program, we plan an additional work program in late 2005.
  • Also in the Jalmat field, three new wells have been drilled to test the Yates / 7-Rivers, and are now being completed. Mission anticipates these wells will be turned to sales in early-second quarter. Mission is the operator of this field and holds a 95% working interest.
  • In the West Lake Verret field in St. Martin Parish, Louisiana, Mission has completed the workover / recompletion of 13 wells (12 successful) to various reservoirs between 3,000 and 13,400 feet for a combined gross initial production rate of 8.4 Mmcfe/d. Mission also drilled three wells in the first quarter 2005, of which two were successful, for a combined gross initial rate of 1.0 MMcfe/d. Mission has identified four additional wells for workover or recompletion in the second quarter of 2005. Mission is the operator of this field and holds a 100% working interest.
  • Other Permian area highlights include five wells in progress in the Goldsmith field in Ector County, Texas, two wells in progress at the Brahaney Unit in Yoakum County, Texas, one successful well and one well in progress in the TXL North Unit in Ector County, Texas, and five wells in progress in the Waddell Ranch field in Crane County, Texas.
  • At the Reddell field located in Evangeline Parish, Louisiana, the Coreil #2 well was completed in the Upper Wilcox reservoir on April 1 and is producing at a gross rate of 2.4 Mmcfe/d. The Pardee O #1 well finished drilling to 11,320 feet and has been perforated and stimulated in the Upper Wilcox reservoir. Official testing and production will start next week upon connection to the pipeline. Mission holds a 13.7% working interest in these two wells. In addition, the Pardee N #1 well that was spuded on March 19, is currently drilling below 12,000 feet. This well will test the Middle/Lower Wilcox reservoir. Mission holds a 15% working interest in this well.