TransTexas' Fourth Well in Eagle Bay Field Completed and Flow Tested At 43.4 Million Cubic Feet of Natural Gas and 4,800 Barrels of Condensate Per Day
The well's natural gas production was flared during the 12 hour test, however the flow was constrained so as to minimize noise and other disturbance in the San Leon residential area. The flow rate substantiates the extension of the field into a second productive fault block, adds new proved reserves in this fault block and improves the potential for additional fault blocks to be productive. The first three wells in the field, currently producing at an aggregate rate of approximately 58 MMcfd of natural gas and 9,000 Bcpd, are all located in the initial productive fault block. TransTexas said that based upon the new 3-D data, and its confirmation by the log of the State Tract 330 No.1 well, it had now increased, to approximately 15, the identified number of potential well locations to be drilled in the field.
The State Tract 330 No.1 was drilled to a measured depth of 17,000 feet. Electric logs indicated the presence of 83 feet of potential net pay, including porosity up to 30%. The well was directionally drilled from an onshore surface location in San Leon to bottom hole in the new fault block located beneath Galveston Bay. The three previous wells in the field were drilled vertically using an offshore, posted barge rig.
Production from the State Tract 330 No.1 will commence upon completion of a 16-inch production pipeline from the onshore surface site in San Leon to TransTexas' production platform, located less then a mile offshore in the shallow waters of Galveston Bay. It is expected that at least the next 2 wells will also be drilled directionally from this onshore drilling location. This new pipeline will allow production from the new well and other successful wells in this fault block to the processing facility in Winnie. It is expected to be placed in service as soon as planning and construction are completed. Ongoing Drilling Program Status
TransTexas also updated the progress of two other key wells in its current drilling program.
In its Trout Point prospect on the eastern shore of Galveston Bay in Chambers County, Texas, the Company is drilling the Sheldon No.1 sidetrack below 17,500 feet. This well is being redrilled from 14,400 feet after a vertical sidetrack of the State Tract 197 was drilled to 21,442 feet as a test of Frio & Vicksburg sands. The sidetrack encountered high pressure natural gas and then an underground blowout, which forced the suspension of drilling while high pressure in the wellbore was controlled. The Sheldon No.1 is targeted to a depth of 22, 500 feet to re-test a series of sub-salt 3-D seismic reflectors. TransTexas owns a 100% working interest in the Trout Point area.
In South Louisiana, the Bourque No.1, located in Vermilion Parish, is drilling at 11,600 feet and is expected to be drilled to total depth and logged by the end of February. TransTexas currently owns a 67% working interest in the Bourque No.1.
TransTexas Gas is engaged in the exploration, production and transmission of natural gas and oil, primarily in South Texas, including the Eagle Bay field in Galveston Bay. For further information on the Company, please visit our web site at http://www.transtexasgas.com.
Except for the historical information contained herein, the matters set forth in this news release may contain forward looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Potential risks and uncertainties include such factors as fluctuations in natural gas and crude oil pricing over which the Company has no control, the ultimate success of exploration drilling programs, the competitive nature of the oil and gas exploration, development and production industries and the uncertainties associated with the drilling, completing and operating of natural gas and oil wells. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.
MJB/ho*
CONTACT: TransTexas Gas Corporation, Houston
Simon Ward, 281/987-8600
Fax: 281/986-8865
E-mail: ir@transtexasgas.com
www.transtexasgas.com
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