The Exploration Co. sees third quarter production dip

Debra Beachy

Petroleum News Contributing Writer

Despite a slight drop in production for the third quarter, The Exploration Co., based in San Antonio, Texas, reported participation in 53 new wells in the Maverick basin in South Texas so far this year, up from 37 for all of 2002. The company also said in a Sept. 4 statement that it plans to have six rigs operating on its Maverick basin block in September.

Drilling continues at a Jurassic wildcat permitted to 18,500 feet. Blue Star Oil & Gas Ltd. is the operator.

The Exploration Co., which focuses on a 480,000 acre lease block in the Maverick basin, said third quarter oil output was 1,692 barrels per day, down from the previous quarter's 1,886 bpd, while gas production stayed flat at 6.6 million cubic feet of per day.

In a recap of its drilling activity in the basin, the company reported:

• It placed on production three additional horizontal wells in the basin’s Glen Rose porosity interval and has drilled five of 13 planned Glen Rose interval horizontal wells.

• It spudded six wells out of 13 vertical wells planned targeting the Glen Rose porosity this year.

• It placed on production two additional horizontal Glen Rose shoal wells. So far this year, the company drilled nine of 17 Glen Rose shoal horizontal wells. A third well is in completion and drilling is under way on a fourth.

• It plans to place a new Georgetown deviated well on production in September, following the completion of a pipeline connection.

• It drilled 19 Pena Creek wells so far this year, up from an original 15-well target. It continued the Pena Creek field infill drilling program, starting production of six more wells in the third quarter.

• It continued dewatering of its Olmos coalbed methane project, started in 2001. At the end of August, 36 wells were producing 170 Mcfd and 1,841 barrels of water per day, compared with 185 Mcfd and 1,947 bwpd at the end of the second quarter.

Blue Star continues drilling the Jurassic target wildcat, which is below 15,700 feet, and expected to reach target depth in approximately 30 days.

“We are very pleased with the results of drilling to date. We have encountered the marine sediments at these depths that we anticipated from our 3-D seismic studies,” said James E. Sigmon, president and CEO. “The setting of casing not only protects the potentially productive zone but it also protects the well bore and is consistent with the well's original engineering design. We remain cautiously optimistic as drilling continues to depths never drilled previously in the Maverick basin.”