Crimson Exploration Inc. (NasdaqGM:CXPO) today announced the commencement of drilling operations on the Mosley #1H (~86% WI), its first well targeting the oil-rich Woodbine formation in Madison County, Texas, the successful completion of the Schwarz #3 (64% WI) in Liberty County, Texas and its 2012 capital program of $74 million that is currently planned to include 15 gross wells (13 operated) focusing on the oil and/or liquids-rich Eagle Ford Shale and Woodbine formations.
The Mosley #1H (~86 % WI) recently began drilling operations, targeting the Woodbine formation, and is planned for a total measured depth of 16,900 feet, including an 7,500 foot lateral with 20 - 24 stages of frac. Drilling of this well is anticipated to take approximately 35 days, completion operations are expected to commence mid-February and initial production, given success, is expected to begin in early March. Industry activity has accelerated in the area with one private company having a very successful drilling program immediately to the west/southwest of our 15,500 net acre position in Madison and Grimes Counties, and larger industry players competing for acreage positions to the north and east of our position. Given success of the Mosley #1H, we expect to have a rig active for the balance of 2012 drilling Woodbine wells in this area.
In Liberty County, Texas, the Schwarz #3 (64% WI) commenced production at a gross daily rate of 9.3 Mmcfe, or 6.3 Mmcf, 87 barrels of oil and 412 barrels of condensate on a 16/64 th choke and 9,593 psi of flowing tubing pressure. The well was drilled to a total vertical depth of 14,750 feet and completed in the Lower Cook Mountain formation.2012 Capital Budget Crimson’s 2012 capital budget is currently targeted at approximately $74 million and is designed to continue our transformation from a predominately natural gas producer to a more balanced oil/gas profile by drilling our opportunities in the Eagle Ford and Woodbine formations. Currently included in these plans are ten wells targeting the oil-rich Woodbine formation in Madison and Grimes counties, Texas and five wells in the Eagle Ford Shale formation in Karnes, Zavala, Dimmit and Bee counties, Texas.
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