Eldorado Spuds Mesa Well in New Mexico

Eldorado Exploration has begun drilling its Mesa prospect in Roosevelt County New Mexico. The Mesa well will drill to 7200 ft to test a potential Canyon reef gas zone at 6000 ft and a Montoya Dolomite section at 7200 ft that may contain oil and gas. The company has a 33% working interest in 11,300 acres across the heart of the prospect.

The potential reef gas play was found using Passive Induced Polarization (PIP) and passive reflection seismology in combination with supportive subsurface geology. Eldorado has also identified 2 additional large structures west of the Mesa well and has leased over 28,000 acres covering the middle of both prospects. Each successful gas well would be spaced on 160 acres and each oil well would be spaced from 40 to 80 acres.

The company's other well, drilling in Hardeman County Texas, will reach a total depth of 8700 ft about the same time as the Mesa well near the end of November. If the Hardeman well is completed as a producer, Eldorado will participate in two additional wells immediately using the same Hardeman drilling rig on PIP and 3-D seismic mapped reef anomalies on nearby leases.

Eldorado Exploration, Inc. is an independent oil and gas company that utilizes a process called Passive Induced Polarization (PIP) to detect electromagnetic signals given off of some geological anomalies. In most cases a positive response indicates a hydrocarbon accumulation and a negative reading almost is always a dry hole. When used with the standard geological tools and methods, the PIP process enhances the odds of success for discovering oil and gas.