Terax Energy Spuds Third Well

Terax Energy Inc. spud its third well Dec. 30, 2005, 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 #3-H horizontal well is the third of five wells Terax plans to drill, under the existing drilling contract, on its approximately 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 #3-H horizontal well to a total measured depth of approximately 6,700 feet. The Mitchell #3-H horizontal well is approximately three miles from the Mitchell #2-H horizontal well.

"As we anticipated, we began drilling our third well in the Barnett Shale the last week of December 2005," said Lawrence Finn, Terax chief financial officer and interim chief executive officer. "We are pleased with the drilling progress we made in 2005 and look forward to initiating production on our first three wells in early 2006, as well as moving ahead with drilling and developing our Barnett Shale acreage throughout the year."

After the Mitchell #3-H horizontal well is drilled, Terax plans to move the rig to a fourth drill site in Erath County.