Clayton Williams Energy Inc. Provides Operations Update.Energy Editors/Business Editors MIDLAND, Texas--(BUSINESS WIRE)--Nov. 4, 2003 Clayton Williams Clayton Wheat Williams, Jr. (b. 1931), a businessman from Midland, Texas, was the unsuccessful Republican gubernatorial nominee in 1990 against the Democratic State Treasurer Dorothy Ann Willis Richards even though he initially led in opinion polls by twenty points. Energy Inc. (Nasdaq:CWEI CWEI Combat Warfare Electronic Intelligence ) today provided an update to recent drilling activity by area. South Louisiana The Company is currently completing the State Lease 17620 #1 on its Pelican Point prospect. This well in Plaquemines Parish was drilled on 3-D seismic to a total depth of 10,500 feet where it encountered productive sands. As a result of this discovery, the Company has begun drilling the State Lease 17620 #2 to test a similar structure on the same prospect. Subject to any permitting delays, the Company expects to complete construction of production facilities in the first or second quarters of 2004. The Company owns a 67% working interest in both Pelican Point wells. Two other 100% owned exploratory wells drilled in October, the State Lease 16656 #1 (Whiskey whiskey [from the Gaelic for "water of life"], spirituous liquor distilled from a fermented mash of grains, usually rye, barley, oats, wheat, or corn. Inferior whiskeys are made from potatoes, beets, and other roots. Bay) and the State Lease 17639 #1 (Neva) were nonproductive non·pro·duc·tive adj. 1. Not yielding or producing: nonproductive land. 2. Not engaged in the direct production of goods: nonproductive personnel. n. . The Company will expense all costs associated with the drilling of these wells, which will result in a pre-tax charge of approximately $3.2 million in the fourth quarter of 2003. The Company is currently drilling two additional exploratory wells in South Louisiana. The State Lease 17378 #1 (Fleur) in Cameron Parish will test various intervals to an estimated depth of 18,000 feet. The Company owns a 67% working interest in this well to casing point and a 75% working interest thereafter. The State Lease 17613 #1 (Top) in Jefferson Parish is owned 100% by the Company and will be drilled to an estimated total depth of 13,200 feet. The Company has also participated in three non-operated wells in an offshore exploration program in the Breton Sound Breton Sound is a sound and a part of the coastline of the U.S. state of Louisiana; it is near Lake Pontchartrain. Two ships in the United States Navy have been named the USS Breton after this area. area of Plaquemines Parish. One well is currently producing, one is being completed and one is being drilled. The Company owns a 10% working interest in these wells. Romere Pass The Company reported that it has now drilled all three of the developmental wells in its Romere Pass acquisition to which proved undeveloped reserves had been assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. . The Romere Pass #113, which was completed in the 2,100-foot sands, and the Romere Pass #117, which was completed in the 7,700-foot sands, are currently producing. The Romere Pass #115 is being completed in the 10,300-foot sands and should be on production in November. The Company expects that production from these three developmental wells will be less than the estimates included in its year-end engineering report. More production history is needed to fully evaluate these wells. There remain two exploratory prospects in the Romere Pass area to be drilled. The Company owns 100% working interest in the Romere Pass acreage. Clayton Williams Energy Inc. is an independent energy company located in Midland, Texas Midland is the county seat of Midland CountyGR6 located on the Southern Plains of the western area of the U.S. State of Texas. As of the 2006 U.S. Census estimate, the city had a total population of 102,073. . Certain statements contained herein constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. , operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission. |
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