Crimson Exploration Updates on Tx. Ops
Crimson Exploration provided drilling updates on projects located in its East Texas and Southeast Texas areas of operations.
- Grizzly #1: Drilled lateral to 18,100 feet in 60 days; Fracing and completion scheduled for mid-July 2010
- Catherine Henderson A-7: Completed and producing at a gross rate of 6.2 Mmcfepd
- Henderson A-8: Recompletion producing at a gross rate of 3.0 Mmcfepd
- Schwarz #2: Reached TD of 15,450 feet; Fracing and completion scheduled for early July 2010
Crimson has recently completed the drilling of its first operated Haynesville/Mid-Bossier well in its Bruin Prospect Area in San Augustine County, Texas. The Crimson Grizzly #1H (55% WI) represents the second well drilled in the Bruin Prospect area and has a surface location approximately 2.5 miles southwest of the Kardell #1H (52% WI) surface location. Crimson finished drilling operations on the Grizzly #1H location, including the pilot hole through the Haynesville Lime, on June 10, 2010 and logs indicated multiple pay zones in the James Lime, Mid-Bossier and Haynesville Shale formations. The well was drilled to a measured depth of 18,100 feet which includes approximately 4,400 feet of horizontal section in the Mid-Bossier Shale. Crimson was able to drill and case the Grizzly #1H well in 60 days which was an operational improvement of 30 days when compared to the Kardell #1H. The well is scheduled to begin completion operations on July 8, 2010 with 14 fracture stimulation stages planned. First production is expected during late July.
The Kardell #1H (52% WI) was the first well drilled in the Bruin Prospect area and was drilled in late-2009 by Devon Energy Corporation. This well was completed in the Haynesville Shale with an initial potential of 30.7 million cubic feet per day and has produced approximately 1.3 billion cubic feet of natural gas since October 22, 2009.
The third location in the Bruin Prospect, the Gobi #1H (66% WI), was spud on June 14, 2010 and is currently drilling below 5,000 feet. It is located approximately 3 miles northwest of the Grizzly #1H location.
The first well in Crimson’s Fairway Farms Prospect, approximately 5 miles to the east of the Bruin Prospect, was spud on May 4, 2010. The Halbert Trust #1H (29% WI), operated by Eagle Oil & Gas Co., is drilling at 17,000 feet in the Mid-Bossier Shale and should reach total measured depth of approximately 18,300 feet within two weeks.
Southeast Texas - Liberty County
Crimson recently completed the Catherine Henderson A-7 (66% WI) well in Liberty County at a depth of 13,075 feet. The well encountered over 80 feet of pay in the Upper Cook Mountain sand. This well was an offset to the Catherine Henderson A-6 well drilled in 2008 which has already produced approximately 4.0 Bcf of gas, 180 thousand barrels of condensate, and continues to produce at a rate of approximately 5.5 Mmcfpd and 300 Bcpd. The A-7 well has been completed and is currently cleaning up at a rate of 6.2 Mmcfepd, or 4.2 Mmcfpd and 325 Bcpd, at a flowing pressure of 7,400 psi.
Crimson has recently finished the drilling of the Schwarz #2 (65% WI) well to a total depth of 15,450 feet. This well was a replacement well for the Schwarz #1 ST which encountered mechanical problems earlier this year and was not able to be completed. The well encountered approximately 60 feet of pay in the Lower Cook Mountains sands. Completion is scheduled for early July with production expected to commence by the end of July.
Crimson will move its rig to the Catherine Henderson A-8 well (66% WI) next. Proposed total depth for this well is 13,300 feet and will test multiple Upper Cook Mountain sands similar to those seen in the Catherine Henderson A-6 and A-7 wells. The A-8 well is expected to reach total depth by the end of July with completion and first production in late August.
Crimson has also performed a number of workovers this year in an effort to increase production rates. In total, over 10 workovers were performed in South Texas and Southeast Texas which have added over 5 Mmcfepd in net production. The most recent of these workovers was the Henderson #8 in Liberty County where Crimson has a 75% working interest. This workover was a recompletion to the Yegua EY-1 sand and is currently flowing at a rate of 3.0 Mmcfepd, or 2.8 Mmcfpd and 30 Bcpd.
Crimson Exploration is a Houston, TX-based independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas, primarily in the onshore Gulf Coast regions of the United States. The Company owns and operates conventional properties in Texas, Louisiana, Colorado and Mississippi, approximately 12,000 net acres in the highly prospective Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties in East Texas, approximately 9,300 net acres in the prospective Eagle Ford play in South Texas and approximately 11,000 net acres in the Denver Julesburg Basin of Colorado.
- Contango, Crimson Exploration Pen Merger Agreement (Apr 30)
- Crimson Hits Oil Pay at Woodbine Well (Jul 31)
- Crimson Completes HZ Texas Well (Mar 29)