American Resources Drilling Activity Update
American Resources Offshore, Inc. has participated in the drilling of successful exploratory wells in High Island Area Block 37 and Galveston Area Block 418.
The High Island Block 37 OCS-G 15769 No. 2 well which was drilled by Marine Drilling's jackup, Marine 4, found productive sands at the Cris R interval. A second well, the No. 3, also found productive sands at the Cris R interval in a separate fault block. Platform and facilities installation is being completed, with initial production expected to commence by year-end. The wells tested at a combined flow rate of 30 million cubic feet of gas per day and 150 barrels of condensate per day. IP Petroleum Company, Inc. is the operator of the block. The Company owns a 3.33% working interest.
The Galveston Block 418 OCS-G 18921 No. 1 well which was drilled by R&B Falcon's jackup, CE Thornton, found productive sands at the Cib op interval. The well has been completed with platform and facilities to be installed. Initial production is expected to commence in the first quarter of 2001. The well tested at a flow rate of 7.4 Mmcfd and no liquids. The William G. Helis Company is the operator of the block. The Company owns a 6% working interest.
The Company has participated in the drilling or re-completion of ten additional wells on other of its existing properties at an average working interest of 5.2%. The result of this effort was seven successful completions and three dry holes. Average daily production net to the Company's interest for the month of November was 2.48 Mmcfd and 141 Bcpd.