OMDA Says Patroon #1 Well Results Disappointing
OMDA Oil and Gas reports the following results on the Patroon #1 initial exploratory test well on its 800 acre Patroon project.
The well reached total depth penetrating the Mooringsport section of the Glen Rose formation yesterday afternoon running high to the nearby 1946 Humble Oil Pickering well. The well was electrically logged yesterday evening by Schlumberger Oilfield Services with disappointing results. The primary Mooringsport zones were identified as hydrocarbon bearing, but regrettably lacked the necessary porosity to justify a half million dollar completion attempt. The partners were looking for a minimum porosity of around 13, but only found 9 on the log. The shallower Fredericksburg zone that was encountered by mud logging earlier in the week also showed both oil and gas but appeared "wet" (too much salt water) on the log. After reviewing the log, It was the unanimous decision of the operator, two geologists, petroleum engineer, and all partner representatives on location that the well would be non-commercial and not worth further expenditures on completion. The log and other well drilling data will be further evaluated as to the affect on the balance of the 800 acres.
Adam Barnett, Chairman stated, "While I, along with the other partners are certainly disappointed in the results of this first well on this exciting prospect, the first wildcat well this company has participated in since I took over two years ago, I have nothing but praise for the professionalism of the operator, geologists and petroleum engineer, and I am proud that OMDA was given the opportunity to participate in a deal with this potential. I also look forward to participating with these individuals in future exploration plays. While this well was 'turn keyed' through logging, completion costs would have required a significant additional cash assessment from all partners. Since there is definitely identifiable oil and gas on the log, many less professional operators would have called for additional completion capital from non-operating partners and probably wasted it on a futile attempt to 'complete.' This is due to the fact that a percentage of completion costs go to the operator for his time and the operator does have a 'carried interest' in the first well." Barnett further stated, "We cannot build OMDA as a significant industry participant in this highly competitive oil and gas environment without apportioning a percentage of our budget in higher risk/reward prospects like Patroon."
Barnett went on to say, "I want to remind our shareholders what I stated in the last press release. We have been very lucky to have been able to build a significant portfolio of new oil and gas prospects before prices began to sky rocket. When added to the additional tens of millions of dollars of oil and gas assets that we are confident will be recovered in our lawsuit against former management, the future of our company could not be brighter." A final comment by Barnett, "In just the past three weeks, we have had favorable activity in all of our other prospects, as well as on the legal front. All of which I am confident that we will be able to report over the next several weeks."
About OMDA Oil and Gas currently owns average participation
interests approaching 47%, in 355 producing and non-producing oil
and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current projects include a 15% working interest in an 800+ acre play in Shelby County, TX, and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well workover play in the Concorde Dome Field in Andersen County TX, and is currently partnered up with Young Oil Corp, the largest
Oil and Gas producer in Tennessee on 46,000 acres in North
Central Tennessee, with an initial 20% interest in a six well program
and a first right of refusal on any other prospects on the Young leases.
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