Chestnut Petroleum will begin a two-well drilling program targeting the prolific Gillis–English Bayou production fairway of Calcasieu Parish, approximately 10 miles north of Lake Charles, Louisiana.

The pad site for the Moss Bluff #1 well is currently under construction with drilling expected to commence this month.

Chestnut Petroleum has slated the Riceland Drilling Rig #23 to drill the Moss Bluff #1 location, and it anticipates that both wells will be online in the second quarter of 2011.

The company said that it currently owns 25 wells in the project’s immediate area, which encompasses 735 acres under lease.

The company’s acreage is located in an area of the field that was discovered by Texaco and Sun Oil in 1961 and has produced 10 million barrels of oil and 136,000,000mcf of natural gas to date.

For 20 years, Texaco and Sun Oil utilized a gas injection program and pumped 85,000,000mcf of natural gas into the field in order to enhance oil recovery.

Chestnut Petroleum said that the two drilling locations have been selected to target the areas of the field where the un-drained injection gas and the associated oil may be captured.