Petsec Set to Begin Mobile Bay Drilling Program

Petsec Energy

Petsec Energy says a drilling rig is expected to arrive at Mobile Bay late this week to commence a 2 to 3 well drilling program.

The drilling will be conducted on the Mobile Bay 950, 951 and 873 leases which are located in the Gulf of Mexico, approximately 160 kilometers east of New Orleans.

The Operator of the drilling will be joint venture participant Royal Exploration Company, Inc.

Petsec's working interest in the leases is 50% before payout (40% after payout), and net revenue interest is 39.42% before payout (30.53% after payout).

The wells will target a total of 6-10 bcfe of gas net to Petsec (after payout) with an estimated drilling time of 12-15 days for each well. If the program is successful, it is expected that the wells could be brought into production as early as four months from the completion of the drilling program.

These will be the first wells drilled on the portfolio of 33 leases acquired in August, which have unrisked mapped targets of 157 Bcfe of gas and 28 million barrels of oil.