Texhoma: Buck Snag's a Double Zone Gas Discovery

Texhoma Energy, Inc. on Thursday said that it has a double zone gas discovery on the prospect known as Buck Snag. The company announced the acquisition of the project on August 10, 2006. Texhoma holds a 30% working interest with the right to back-in for a further 12.5% WI after payout of the well. The project covers 280 acres of land in Colorado County, Texas.

The No. 1 Schiurring well reached total depth of 4,400 feet on August 16, 2006. Electric logs indicate an 8 feet-thick gas sand at a depth of 2,030 feet and a 6 feet-thick gas sand at 1,810 feet. In addition to the logs, formation test recovered gas with no water and indicated normal pressure whilst sidewall cores also indicate gas bearing sands with porosity and permeability of commercial quality.

The well will be completed in the 2,030-foot sand and placed on production through existing pipelines. The operator is estimating that the well will flow at a rate of 200 to 300 MCF of gas per day and that total estimated recoverable reserves to the two sands are between 0.5 to 1 BCF of gas.

Hydrocarbon indicators exist at several deeper zones as evidenced by log analysis and sidewall cores, although these were deemed not to be commercial at this location.

The operator plans to drill up to five offset wells to the deeper sands commencing before the end of 2006. Buck Snag is part of a larger drilling program in Colorado and Brazoria County, Texas, with the operator, Sunray Operating Company.