Lexaria Hits Gas Pay in Mississippi

Lexaria Corp. has completed the drilling of two more wells in Mississippi. The BR-F33 well was drilled to total depth of 3,837 feet and successfully encountered an estimated 12-foot gas pay intersection. This well has been completed and will be connected to pipeline as soon as possible.

The Winter/Spring drilling program is now completed. Six wells targeted the Frio zone, all of which encountered gas pay, and five of them were completed as expected natural gas wells.

Lexaria anticipates it will have a total of between 11-15 Mississippi wells producing gas and/or oil this summer, up from 5 wells recently. Lexaria is also currently producing oil from its Isbill well in McCain County, Oklahoma.

Another well, the Randall #1, was drilled to total depth of 5,100 feet, and although modest natural gas pay was encountered, it was not deemed sufficient to complete the well, which has subsequently been plugged and abandoned.

Lexaria is also preparing to drill additional wells in the Area of Mutual Interest (AMI) selected from targets within a roughly 200,000-acre area, in Mississippi and Louisiana. Up to 16 new wells could be drilled in the Summer/Fall drilling program, of which the first 10 well locations have been determined. Lease and permitting work is ongoing. The AMI agreement covers a total of 50 wells to be drilled, which, when combined with the 12 wells Lexaria obtained interests in prior to the AMI, means that Lexaria Corp. could participate in up to 62 wells in this Mississippi/Louisiana project.

Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 20% and 40% gross interests in various gas and oil projects.