TXCO Resources Reports Record Third-Quarter Oil and Gas Sales; Updates Current Field Operations
20 Octobre 2008 - 5:50PM
Business Wire
TXCO Resources Inc. (Nasdaq:TXCO) today provided estimated oil and
gas sales volumes for the third quarter and nine months of 2008 and
updated current operations. Highlights include: Record
third-quarter and nine-month combined oil and gas sales; Ten rigs
drilling currently; A total of 89 wells spudded to date this year
out of a planned 100+ wells. Net, third-quarter oil and gas sales
were approximately 3,184 bopd and 7.7 mmcfd, a combined rate of
approximately 26.8 mmcfde, a 3.7 percent increase above last year�s
July-September quarter. This rate was down 7.4% from the second
quarter due to hurricane-related shut-ins of non-operated Gulf
Coast production, as well as the previously reported sale of 15
non-core properties with 1.3 mmcfd of production. TXCO Estimated
Oil and Gas Sales Volumes* � � 3Q 2008 � 3Q 2007 � %Change � 9 mo.
2008 � 9 mo. 2007 � %Change Natural gas/mmcf 706.7 652.0 +8.4%
2,184.9 1,517.3 +44.0% Oil/bbls 293,000 287,500 +1.9% 848,000
679,600 +24.8% Natural Gas Equivalent/mmcf 2,465 2,377 +3.7% 7,273
5,595 +30.0% Barrels Equivalent/boe 410,800 396,200 +3.7% 1,212,200
932,500 +30.0% *2008 periods unaudited. mmcf=million cubic feet,
bbls=barrels, boe=barrels of oil equivalent Operations Review
Currently, TXCO has 10 rigs running, including eight on its core
Maverick Basin acreage, one in the East Texas Fort Trinidad Field
and one in Oklahoma. The Company has had record drilling activity
this year, starting 89 wells through early October, and is on
target to achieve its record $125+ million CAPEX program, which
calls for drilling or re-entering more than 100 wells in 2008.
Based on current commodity prices, the Company has adequate capital
and equipment resources to complete its 2008 drilling program.
Maverick Basin TXCO is currently developing three major projects in
the Maverick Basin, including the Pearsall/Eagleford shale plays,
Glen Rose Porosity oil play and San Miguel heavy oil sands. TXCO�s
Pearsall shale gas resource project area consists of 848,300 gross
(341,000 net) acres covering 1,325 gross (533 net) sections, with
estimated recoverable gas of 16 to 24 bcf per section. TXCO is
currently drilling and producing wells to evaluate the long-term
commercial viability of the play on acreage farmed-in from Anadarko
Petroleum Corporation and EnCana Oil & Gas (USA) Inc. Each
farm-in agreement has substantially similar terms and conditions,
consisting of three phases. A horizontal Pearsall well drilled by
TXCO under the EnCana farm-in agreement, the Myers 2-683H (50
percent working interest) was placed on production in late
September at 2.8 mmcfd on a 10/64-inch choke with 3,239 psi flowing
tubing pressure. The well averaged 2.2 mmcfd during the first 12
days of production even though it was curtailed by the low-pressure
pipeline system into which it is producing. This well was drilled
horizontally and completed using a cemented 4.5-inch liner with a
five-stage fracture stimulation job. This was the third and final
well required to be drilled under Phase I of the farm-in. Based on
the success of the three initial wells, TXCO has elected to move to
Phase II and will drill four additional Pearsall wells before July
1, 2009. On the Anadarko farm-in, four wells have been drilled. A
fracture stimulation is under way on the Briscoe Chupadera 1 (50%
WI through completion). The re-entry was limited to 1,800 feet
laterally and a 2.875-inch liner run and cemented in place. The San
Pedro 2H (50% WI through completion) is a newly drilled well with a
3,050-foot lateral and a 4.5-inch liner and is waiting on a
fracture stimulation which has been delayed as result of a current
tight supply of high-strength proppants. This was the fourth well
drilled under Phase I of the Anadarko farm-in agreement requiring
two Pearsall and two Eagleford test wells. Following stimulation of
the San Pedro 2H, TXCO intends to exercise its right to move to
Phase II of the agreement and drill four additional wells within
the next year. St. Mary Land & Exploration Company also is
participating with TXCO under the agreement. On the Eagleford shale
play, the Briscoe Catarina Ranch 1H (50% WI) was re-entered and
drilled 3,300 feet horizontally. After a five-stage fracture
stimulation, the well went on production at the end of August and
has averaged 80 bopd and 533 mcfd for the first 30 days. The San
Pedro 1H (50% WI through completion) was re-entered and drilled
3,450 feet horizontally and currently is flowing back following a
five-stage fracture stimulation performed in early October. The
well has averaged 236 bopd and 664 mcfd during the first seven days
of flowback. Elsewhere in the Maverick Basin, the Glen Rose
Porosity oil play�s quarterly sales were approximately 218,000
barrels, or 2,370 bopd, in the third quarter, a 5 percent increase
from the year-earlier period, and 5 percent below record
second-quarter 2008 levels due primarily to lower production levels
from non-operated properties on the Comanche lease. The Company has
completed or spudded 29 of 35 Porosity wells scheduled for this
year. An annual hunting season drilling moratorium that impacts
certain Porosity leases will start in November, extending into
January 2009. On TXCO�s San Miguel oil sands project,
high-temperature steam injection continues at the steam-assisted
gravity drainage (SAGD) pilot and initial oil shows have begun.
Pre-heat steam circulation continues on the separate
fracture-assisted steamflood technology (FAST) pilot. The FAST
pilot includes both a vertical, inverted five-spot well pattern and
a horizontal three-well pattern that utilizes a modified FAST
process. The Company hopes to have a meaningful response on the
SAGD project by the end of first-quarter 2009 and on the FAST
projects by the end of second-quarter 2009. Fort Trinidad In East
Texas, TXCO has five wells targeting Glen Rose shoals in the Fort
Trinidad Field in completion or drilling horizontal sidetracks.
Results on these wells are expected by year end. Marfa Basin In
West Texas, an advanced, 26-mile, 2-D swath seismic survey is
nearing completion on TXCO�s 147,000-acre lease block in the Marfa
Basin. Processing of the data is expected to be completed by
December. Management Perspective �TXCO had robust operating results
in the third quarter and we are on pace to meet our target for
record drilling activity in 2008,� said CEO James E. Sigmon. �We
believe our strong cash flow will enable us to fully fund our CAPEX
requirements for the year. However, like all oil and gas companies,
we are watching commodity prices closely and are prepared to scale
back drilling if necessary. �We are particularly excited about the
results on our Pearsall gas shale play and the Eagleford oil shale
play,� Sigmon added. �We and our partners, EnCana, Anadarko and St.
Mary, are in the planning stages to delineate our acreage positions
by drilling additional horizontal wells. We now expect to add
additional activity in the fourth quarter of this year and into
2009.� Earnings Announcement and Conference Call TXCO will hold a
conference call with investors, analysts and other interested
parties, scheduled for November 5, to discuss third-quarter and
nine-month 2008 financial results and current operations. The call
will be broadcast live over the Internet at
http://www.txco.com/concall.html. The Company will release earnings
prior to the conference call. Date: � Wednesday, November 5, 2008
Time: 11:00 a.m. EST 10:00 a.m. CST 9:00 a.m. MST 8:00 a.m. PST
Call: 877-387-9209 (US/Canada) and 706-643-3820 (International)
Passcode 69738976 Internet: Live and rebroadcast over the Internet:
Log on to http://www.txco.com/concall.html Replay: Available
through Friday, November 7, 2008, at 800-642-1687 (US/Canada) and
706-645-9291 (International) with passcode 69738976 and for 30 days
at http://www.txco.com/concall.html. About TXCO Resources TXCO
Resources is an independent oil and gas enterprise with interests
in the Maverick Basin, the onshore Gulf Coast region and the Marfa
Basin of Texas, and the Midcontinent region of western Oklahoma. It
has a consistent record of long-term growth in its proved oil and
gas reserves, leasehold acreage position, production and cash flow
through its established exploration and development programs.
TXCO�s business strategy is to build shareholder value by acquiring
undeveloped mineral interests and internally developing a
multi-year drilling inventory through the use of advanced
technologies, such as 3-D seismic and horizontal drilling. It
accounts for its oil and gas operations under the successful
efforts method of accounting and trades its common stock on
Nasdaq�s Global Select Market under the symbol �TXCO.�
Forward-Looking Statements Statements in this press release that
are not historical, including statements regarding TXCO�s or
management�s intentions, hopes, beliefs, expectations,
representations, projections, estimations, plans or predictions of
the future, are forward-looking statements and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements include those relating to
estimated financial results, or expected prices, production
volumes, well test results, reserve levels and number of drilling
locations expected, drilling plans, including the timing, category,
number, depth, cost and/or success of wells to be drilled, expected
geological formations or the availability of specific services,
equipment or technologies. It is important to note that actual
results may differ materially from the results predicted in any
such forward-looking statements. Investors are cautioned that all
forward-looking statements involve risks and uncertainty, including
without limitation, the costs and accidental risk inherent in
exploring and developing new oil and natural gas reserves, the
price for which such reserves can be sold, environmental concerns
affecting the drilling of oil and natural gas wells, impairment of
oil and gas properties due to depletion or other causes, the
uncertainties inherent in estimating quantities of proved reserves
and cash flows, as well as general market conditions, competition
and pricing. TXCO undertakes no obligation to revise or update any
forward-looking statements, or to make any other forward-looking
statements, whether as a result of new information, future events
or otherwise. More information about potential factors that could
affect TXCO�s operating and financial results is included in TXCO's
annual report on Form 10-K for the year ended December 31, 2007,
and its Form 10-Q for the quarter ended June 30, 2008. These
reports and all previously filed documents are on file at the
Securities and Exchange Commission and can be viewed on TXCO's Web
site at www.txco.com. Copies are available from TXCO without
charge.
Txco Resources (MM) (NASDAQ:TXCO)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Txco Resources (MM) (NASDAQ:TXCO)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024