The company has perforated and stimulated one group of target sands at a vertical depth of 19,200 feet and is evaluating these sands which appear to be marginally productive. The company plans to conduct similar completion operations on the remaining intervals.
To date, the company has incurred approximately $12 million of drilling and completion costs, net to its 70% working interest. The company is also continuing completion activities on the Margarita No 1 in Robertson County, Texas, US, in the upper Bossier formation.
The company also announced that it had entered into an exploration agreement with an industry partner covering six of the company’s exploratory prospects in south Louisiana, US. The terms of the agreement obligate the industry partner to commence drilling up to six wells. The partner will bear 85% of all drilling costs incurred to casing point and 50% of all subsequent costs to earn a 50% working interest.
Clayton Williams Jr, president of Clayton Williams Energy, said: We remain optimistic about our Bossier acreage. Currently we have 142,000 net acres under lease in the east Texas Bossier play, of which approximately 70,000 net acres are held by production. We also have 170,000 net acres under lease in the Louisiana Bossier play.
