TXCO Increases Production from Maverick Basin
The Exploration Company reports that oil production has increased more than 90 percent since March 31 in its Maverick Basin field.
TXCO's net oil output stood at 2,054 barrels of oil per day (BOPD) in mid June compared with 1,074 BOPD at the end of March. Natural gas production was 6.3 million cubic feet per day (MMcfd), a 3 percent decrease from March 31. Combined daily production reached 18.6 million cubic feet of gas equivalent per day, more than a 40 percent increase since the end of March 2003.
TXCO has participated in a record 41 new wells thus far in 2003, including a well spudded Friday in the Pena Creek Field -- surpassing TXCO's previous record of 37 wells drilled during all of 2002. In addition, the Company has re-entered four existing wells this year. While the Company approaches mid-year 2003 slightly behind schedule on its original, 93-well target, TXCO anticipates accelerating its development program pending review of ongoing drilling results. Five drilling rigs are now working on TXCO's Maverick Basin lease block with a sixth and seventh currently scheduled to start in July. The Company's record annual capital budget of $33.1 million includes $26.4 million earmarked for drilling.
James E. Sigmon, president and chief operating officer, said TXCO's record drilling program will continue in the second half of 2003. "We continue to prove the value of our multi-play/multi-pay strategy in the Maverick Basin," he said. "We are encouraged by the excellent results we have had thus far in 2003."
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