Basic Earth Abandons Well on Texas Coast

Basic Earth Science Systems, Inc. reported that attempts to establish production from its PIDCO #1, Matagorda County, Texas, have been unsuccessful. The well is currently shut-in while the Company obtains approval from the Texas Railroad Commission to begin plugging operations.

"High bottom hole pressures were encountered during this effort, but inadequate permeability in the Middle Frio sands kept the well from producing at commercial rates," explained Ray Singleton, the Company's president. "While we are disappointed by the results of this operation, our second well on this prospect, the PIDCO #2, continues to generate strong cashflows."