Terax Energy Spuds Second Well

Terax Energy spudded its second well in Erath County, Texas, targeting the Barnett Shale Formation gas play and expanding the company's drilling operations in the Fort Worth Basin.

The Mitchell #2-H horizontal well is the second of five wells Terax plans to drill, under its drilling contract, on its 11,300-acre block in Erath County. Terax has the option to extend the drilling contract to additional wells, as noted in the company's Oct. 5 press release.

Terax expects to drill the Mitchell #2-H horizontal well to a total measured depth of approximately 8,200 feet. After the Mitchell #2-H horizontal well is drilled, Terax plans to move the rig to a third drill site in Erath County.

In addition, Terax has reached total measured depth of approximately 6,600 feet on the company's initial well, the Mitchell #1-H, and has set production casing. Upon receipt of Schlumberger Logging Services' interpretation of the FMI log, Terax engineers, along with BJ Service Co., will design the most appropriate completion procedure for the reservoir. Terax expects to complete the Mitchell #1-H in the first quarter of 2006.

"We are excited to reach total measured depth on our first well and begin drilling our second well in a timely manner," said Andrew Hromyk, director of Terax. "With a strong field team in place, Terax is positioned well to move forward with its drilling campaign in the Barnett Shale Formation."

Through a log analysis of the vertical section of the Mitchell #1-H obtained earlier this month, Schlumberger reported to Terax that the Barnett Shale section in the well appears to contain gas in place and the possibility of hydrocarbons with low water saturation and good permeability.

The Mitchell #2-H horizontal well is approximately one-half to a mile north from the Mitchell #1-H well. Terax is currently planning the infrastructure for these two wells, in order to bring their production on line in a timely manner.