Enserch Exploration Announces Partnership with Mobil in Green Canyon 254 Allegheny Project

Enserch Exploration, Inc. has announced that Mobil Exploration & Producing U.S. Inc. has signed a letter of intent to purchase a 40 percent interest in the Green Canyon 254 Allegheny project, subject to mutually acceptable consummation documents. The project, located in the Gulf of Mexico, has shown promising results with two wells and a sidetrack already drilled. DeGolyer and MacNaughton (D&M) has recognized gross reserves at the Allegheny project to be 86 million barrels of oil and 149 billion cubic feet of natural gas, with 50 million barrels of oil and 102 billion cubic feet of gas in the proven category. Enserch Exploration will retain a 40 percent working interest and remain operator of the project.

Key Takeaways:

• Enserch Exploration and Mobil Exploration & Producing U.S. Inc. have signed a letter of intent for a 40% partnership in the Green Canyon 254 Allegheny project, subject to consummation documents.
• Reading & Bates previously signed a letter of intent to purchase a 20% interest in the project, with Enserch Exploration retaining a 40% working interest.
• DeGolyer and MacNaughton (D&M) estimates gross reserves at the Allegheny project at 86 million barrels of oil and 149 billion cubic feet of natural gas.
• The project has shown promising results with two wells and a sidetrack drilled, with another confirmation well scheduled for June.
• Enserch Exploration will remain operator of the project, with partners including Mobil Exploration & Producing U.S. Inc. and Reading & Bates.
• The project's location in the Gulf of Mexico offers access to strategic infrastructure, including the proposed Green Canyon production facility.
• The company's focus on the areas of Texas and the Gulf of Mexico is expected to drive future growth in the natural gas and oil industry.

Statistics:

• 86 million barrels of oil reserves estimated at the Allegheny project.
• 149 billion cubic feet of natural gas reserves estimated at the Allegheny project.
• 50 million barrels of oil in the proven category at the Allegheny project.
• 102 billion cubic feet of gas in the proven category at the Allegheny project.
• Two wells and a sidetrack have been drilled on the project to date.
• Another confirmation well is scheduled to be drilled in June of this year.
• $0 in financial terms of the agreement announced by Enserch Exploration (terms remain confidential).

Sources:

• PRNewswire: Enserch Exploration Announces Partnership with Mobil in Green Canyon 254 Allegheny Project
• Enserch Exploration press release, May 15, 1995