Paxton Energy Announces Project Updates
Paxton Energy, Inc.
|Monday, August 29, 2005
Paxton Energy,Inc. has been advised by Bayshore Exploration LLC, the operator of the Cooke Ranch Deep Prospect, that drilling of the Cooke Ranch #3 well has reached a total depth of 17,525 feet.
Bayshore has run a Quad Combo test on several zones above 12,000 feet with strong gas indications consistent with existing shallow field production on Cooke Ranch from the Wilcox, Escondido and Edwards. Further log testing is currently being conducted from a depth of 12,000 to 17,525 feet on the Glenrose, Sligo and Hosston formations before the Cook Ranch #3 well operations will continue. Results will be announced upon completion of the well.
Paxton's Chief Operating Officer, Keith Mckenzie stated, "We are extremely pleased with the drilling progress to date and the initial positive reports from the Cooke #3 deep test well. Successful development in the Cooke Ranch Field with the potential of exploiting an estimated 200 billion cubic feet of natural gas reserves will clearly establish Paxton as an energy exploration and production company on the Texas Gulf Coast."
Cooke Ranch Project
Cooke Ranch is located in La Salle County, 15 miles southwest of the town of Cotulla midway between San Antonio and Laredo in Southwest Texas. Paxton owns an 11.75% working interest in the 8884 acre prospect and 15,000 additional acres under option. The Cooke Ranch #3 well was spudded in June 2005 to test the Smackover at 21,000 feet. Other joint venture partners include Bayshore Exploration L.L.C., and Devon Energy NYSE:DVN.
The Cooke Ranch Field currently has two dozen producing oil & gas wells from three shallow horizons above the 11,000 feet level. All three of these formations represent prospective low-risk pay zones for the Cooke Ranch deep drilling program. To date, these shallow pay zones have yielded over 18 BCF (billion cubic feet) of natural gas and one million barrels of oil & gas concentrate since the field was first discovered in 1959.
The Warhawk Prospect is located in Leon County, 13 miles southwest of the town of Centreville midway between Houston and Corsicana in Central Texas. Paxton has secured the right to participate in a 15% working interest in the 1,025 acre prospect which will provide for up to four step-out wells.
Petrox Energy Corporation has began work-over operations in preparation for the re-entry of Morris Unit No. 1 Well from 10,500 feet to target the Cotton Valley Pinnacle Reef and various other formations to a total depth of 17,500 feet with estimated reserves of up to 300-350 BCF. Potential daily flow-rates are estimated between 20 MMCF and 50 MMCF of gas per day. The target is located in a prolific gas field where multiple gas-bearing formations have been discovered. Significantly, the Warhawk #1 well is situated in close proximity to a well drilled ten years ago by Amoco which had initial flow rates during testing of over 35 MMCF.