Creston Begins Re-Completion Work on Utah Acreage

Creston Resources has commenced initial re-completion operations in Utah in an on-going program will tap production in previously tested and produced pay zones in addition to adding new perforations in potential pay zones. The previously produced Wasatch formation pay zones averaged 30 barrels of oil per day in their last 24 months of daily production before being shut-in due to the low oil prices of 1986. The previously produced pay zones in the Green River formation averaged 89 barrels of oil per day in their last 12 months of daily production before being shut off when the well was deepened to the prolific over-pressured Wasatch formation. An additional pay zone in the Green River formation has a tested gas rate of up to 432,000 cf/day, but was never produced due to the low gas prices at the time of the last test. These three previously proven zones have a total daily potential of 191 barrels of oil equivalent per day. The production from these zones will be supplemented by additional perforations in the Green River formation for a further increase in daily production potential. It is anticipated that the well will be returned to daily production before the end of November 2005. Gas transportation and sales facilities have been installed and a gas sales contract is in place.

This well is located in the Altamont-Bluebell Field, which historically has produced over 350 million barrels of oil equivalent. Due to the over-pressured, fractured nature of reservoir in the field, as well as the large vertical extent of potential pay zones, many of the wells have formation damage resulting from traditional completion methods. Creston & Fellows plan to employ a strategic mix of conventional and innovative proprietary techniques to reduce or reverse the effects of formation damage and increase oil and gas recovery. Evaluation of the next well to be returned to production in this program continues concurrently.