Clayton Williams Energy Provides Update on Operations.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. -- 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-NMS:CWEI CWEI Combat Warfare Electronic Intelligence ) today provided an update on its exploration and activities by area. South Louisiana The Company has begun a six-well program on its Floyd prospect in Plaquemines Parish targeting multi-pay objectives ranging in depths from 3,000 to 12,000 feet. The State Lease 195 QQ #1 was drilled to a total depth of 12,981 feet and is currently being completed. The State Lease 195 QQ #2 has been drilled to a total depth of 6,296 feet and is pending completion. The State Lease 195 QQ #3 has been drilled to a total depth of 9,170 feet, and the Company is currently preparing to run casing on this well. Under the terms of a farmout agreement, the Company bears 100% of the costs on these wells before casing point to earn a 75% working interest in the drilled acreage. The Company has also completed the Miami Corp #1 (Tara) in Cameron Parish in the Upper 67 sand in intervals between 12,895 and 12,920 feet. The well was completed as a gas well and tested at an average of 6,800 Mcf of gas per day and 10 barrels of oil per day with a flowing tubing pressure of 4,100 psi PSI - Portable Scheme Interpreter . The Company owns 100% of the working interest in this well and expects the well to be on production in the second quarter of 2006 after completion of production facilities. The Company is currently drilling the Borah #1 (Cypress Isle), a 17,000-foot exploratory well in St. Martin St. Martin in midwinter, gave his cloak to a freezing beggar. [Christian Hagiog.: Brewer Dictionary] See : Kindness Parish targeting the MA-11 and MA-12 sands, in which it owns a 75% working interest. North Louisiana North Louisiana, also known as Sportsman's Paradise, is a region in the U.S. state of Louisiana. The region has two metropolitan areas: Monroe and Shreveport-Bossier City. The Company announced that it is actively exploring for gas reserves in the Cotton Valley/Bossier play in North Louisiana. The Company believes that these regional tight sandstone sandstone, sedimentary rock formed by the cementing together of grains of sand. The usual cementing material in sandstone is calcium carbonate, iron oxides, or silica, and the hardness of sandstone varies according to the character of the cementing material; quartz formations have become more economically viable due to higher product prices, coupled with enhanced drilling and completion techniques. The Company has accumulated more than 115,000 net acres in this area, and to date has participated in six non-operated wells on a small portion of the acreage, four of which are expected to be productive and two are in progress. The Company is currently drilling the Harris #1 (NE Vernon), a 14,500-foot well in Jackson Parish targeting the Bossier Bossier may refer to:
East Texas The Company has also begun acquiring leases in the Bossier play in East Texas. To date, the Company has acquired approximately 28,000 net acres in this area and is actively seeking to add to its acreage position. Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. In 2005, the Company initiated an exploration program in West Texas seeking to extend the limits of the Wolfcamp formation that is regionally productive in this area. The Company acquired more than 50,000 net acres and has drilled 11 wells across a wide portion of this acreage. While all of the wells were completed as producers, the oil and gas reserves derived from this drilling program were inadequate to recover the Company's capitalized costs. As a result, the Company will record an $18 million charge for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of proved properties in the fourth quarter of 2005 related to its Wolfcamp program. The Company drilled the Leoncita #1, a 9,300-foot exploratory well in Pecos County, Texas Pecos County is a county located in the U.S. state of Texas. In 2000, its population was 16,809. The seat of the county Fort Stockton6. Pecos County is named for the Pecos River. Geography According to the U.S. targeting the Barnett Shale The Barnett Shale is a geological formation of economic significance. It consists of sedimentary rocks of Mississippian age in the U.S. State of Texas. The formation is estimated to stretch from the city of Dallas to west of the city of Fort Worth and south, covering 5,000 square . This well was unsuccessful and resulted in a $4.5 million charge to exploration costs in the fourth quarter of 2005. In addition, the Company drilled 22 gross (18.1 net) wells in the Permian Basin and conducted remedial operations on existing wells in 2005. While some of the drilling activities in 2005 did not result in the quantities of oil and gas reserves that the Company had expected, the Permian Basin continues to be a significant source of production and cash flow for the Company. Summary Clayton W. Williams, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Clayton Williams Energy, Inc. said, "I am very encouraged about our first well on the Floyd prospect in South Louisiana, and I am also excited about our Bossier/Cotton Valley plays in North Louisiana and East Texas." Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas. Except for historical information, statements made in this release are 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 Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, exploration risks, uncertainties about estimates of reserves, competition, government regulation, costs and results of drilling new projects, and mechanical and other inherent risks associated with oil and gas production. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements. |
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