The Exploration Company has drilled and completed three wells that are producing a total of 2,200 gross barrels of oil per day on its Comanche lease property in Maverick Basin in Texas. The fourth and fifth wells targeting the Glen Rose interval on the Comanche lease are currently drilling and plans are to drill six additional wells during the remainder of the year. As a result of this discovery, the Company's production mix has increased to 54 percent oil from less than 22 percent oil at the beginning of the year.
In June 2002 the fourth and fifth Glen Rose interval wells were spud on the Comanche lease by the operator, Saxet Energy, Ltd. The fourth well, the Comanche 1-39, has reached total depth of 8,225 feet and should be completed within two weeks. The fifth well, the Comanche 1-112 is currently drilling. Current plans are to drill six additional wells before the end of the year to more fully define the productive interval, which appears to be a depositional accumulation associated with the Glen Rose reef complex. TXCO owns a 50 percent working interest in the lease.
The discovery on the Comanche lease was made in April 2002, with the Comanche 1-111, which identified a large productive interval covering approximately 850 acres with 55 feet of net pay. The first three wells are associated with two distinct Glen Rose reef complexes, but are all producing from the same Glen Rose interval at approximately 6,600 feet. The Comanche 1-111 is producing approximately 1,400 barrels of oil and 200 barrels of water per day. The second well, the Comanche 1-2 is producing approximately 300 barrels of oil and 300 barrels of water per day and the Comanche 1-13 is producing approximately 500 barrels of oil and 200 barrels of water per day.
James E. Sigmon, TXCO President and Chief Executive Officer, said, "Our evaluations and the petrophysical work performed by our top-tier reservoir engineering service providers, indicate the Glen Rose interval in the Comanche lease is a strong water drive and should lead to higher ultimate recoveries. The expansion of our drilling program here reflects our belief in the potential of this newly identified oil zone."
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