Monday, April 12, 2010

Crimson Exploration Update

Today, Crimson Exploration updated its Haynesville Shale drilling plans for 2010. The company has about 12,000 net acres prospective for both the Haynesville and Bossier Shales in the far southern part of the play in San Augustine and Sabine Counties, Texas. Crimson estimates drilling costs of between $10 and 12 million per well and estimates a 6.5 Bcfe ultimate recovery per well.

Crimson currently has one rig under contract and recently started drilling at the Grizzly #1 well in the Bruin prospect area of San Augustine Co. The well will have a 4,500’ lateral with 14 frac stages. The company, which is partial to the names of large animals and exotic locales, is preparing three more Haynesville drilling sites in the vicinity of Grizzly, Kodiak (Bruin), Gobi (Bruin) and Bengal (Tiger Prospect). Once drilling is complete at Grizzly #1, the rig will move to one of these locations. These wells will be operated by Crimson.

Crimson will also participate in two Haynesville wells in the Fairway Farms prospect area in San Augustine Co. on a non-operating basis. The first well will be spud in May 2010.

In addition to the prospects noted above, Crimson also has leases in the Tebo prospect and likely will lease another rig in 2010 or 2011 to drill additional wells.

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