Bois d'Arc Updates Operating Results
Bois d'Arc Energy has updated its operating results to date in 2006.
The company reports successful results from its exploration program. During the first quarter of 2006, Bois d'Arc drilled its fifth well to delineate the Laker prospect discovery made last year at Ship Shoal block 111. The OCS-00066 #A-8 was drilled in the adjacent Ship Shoal block 112 to a depth of 13,177 feet. This well was designed to test a new fault block on the northeast flank of the Ship Shoal 111 salt mass. The well encountered 52 feet of net pay in two well-developed sands.
Bois d'Arc also drilled a well to test its Coaster prospect and its Steelhead prospect in the first quarter in Ship Shoal block 111. The well found that the Coaster prospect was not productive. Coaster was sidetracked to test the primary target: Steelhead. The OCS-G 24924 No.1 ST was drilled to a depth of 13,496 feet to test a stratigraphic trap located between the Ship Shoal block 97 and Ship Shoal block 111 field accumulations. The well encountered 35 feet of net pay in the objective sand and appears to have proven the reserves targeted for the prospect.
Bois d'Arc is currently drilling the OCS-G 13912 No.4 at Ship Shoal block 99 and the OCS-G 22664 No.1 at Eugene Island block 166 to test the Pickle prospect. Bois d'Arc is also preparing to drill the OCS-G 18054 #54 ST to test its Sockeye prospect at South Pelto block 22. This well will sidetrack out of an existing temporarily abandoned well at approximately 14,000 feet and will be drilled to a total depth of approximately 19,000 feet.
One unsuccessful well was drilled in the first quarter of 2006 at South Timbalier block 11. The OCS-G 13925 No.1 was drilled to a depth of 10,792 feet and encountered two targeted sands that were found to be wet. The company's share of the cost of this dry hole of $3.1 million will be written off in the first quarter of 2006.
Bois d'Arc estimates that its first quarter 2006 production rate will average 75 to 76 Mmcfe per day of natural gas equivalent. The company still has approximately 15 Mmcfe per day shut in on five of its production platforms pending the return to service of third-party pipelines. It anticipates this production will be restored in May.
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