Crimson Exploration Inc. Announces Successful Zavala County Eagle Ford Completion
HOUSTON--(BUSINESS WIRE)-- Crimson Exploration Inc. (NasdaqGM: CXPO) today announced the KM Ranch #2H well (50.0% WI), targeting the Eagle Ford Shale formation in Zavala County, Texas, was successfully completed at a gross initial production rate of 511 Boepd, or 457 barrels of oil and 326 mcf of natural gas. The well was drilled to a total measured depth of 12,875 feet, including 5,250 feet of perforated lateral, and was completed using 16 stages of fracture stimulation. Crimson has approximately 6,550 net acres between Zavala and Dimmit counties, TX.
Allan D. Keel, President and Chief Executive Officer, commented, "Crimson continues to be very pleased with the progress we are making in the Zavala and Dimmit County area of south Texas. We believe the progression of improved results by Crimson and other offset operators has demonstrated that the Eagle Ford is an economically viable play in this part of the trend. Recent higher initial production rate wells drilled by other operators in the eastern portion of Zavala County, and immediately adjacent to Crimson's leasehold, have been completed with average effective lateral lengths of approximately 7,500 feet. The average length is approximately 40-45% longer than the effective lateral length of the KM Ranch #2H implying, on a normalized basis, our results are in line with recent well results for the area. We believe our current stimulation recipe is consistent with other area operators and our next phase of development in this area will entail drilling lateral lengths greater than 7,000 feet, which our acreage position accommodates."
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, including approximately 18,500 net acres in Madison and Grimes counties in Southeast Texas, approximately 8,200 net acres in the Eagle Ford Shale in South Texas, approximately 11,000 net acres in the Denver Julesburg Basin of Colorado, and approximately 5,700 net acres in the Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties in East Texas.
Additional information on Crimson Exploration Inc. is available on the Company's website at http://crimsonexploration.com.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC") and applicable securities laws. Such statements include those concerning Crimson's strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that Crimson expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions Crimson made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Crimson's control. Statements regarding future production, revenue, cash flow operating results,leverage, drilling rigs operating, drilling locations, funding, derivative transactions, pricing, operating costs and capital spending, tax rates, and descriptions of our development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, commodity price changes, inflation or lack of availability of goods and services, environmental risks, the proximity to and capacity of transportation facilities, the timing of planned capital expenditures, uncertainties in estimating reserves and forecasting production results, operating and drilling risks, regulatory changes and the potential lack of capital resources. All forward-looking statements are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions.Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Please refer to our filings with the SEC, including our Form 10-K for the year ended December 31, 2011, and subsequent filings for a further discussion of these risks. Existing and prospective investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Crimson Exploration Inc.
E. Joseph Grady, 713-236-7400
Senior Vice President and Chief Financial Officer
Josh Wannarka, 713-236-7400
Manager of Investor Relations and FP&A
KEYWORDS: United States North America Texas
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