Vintage Petroleum Announces Successful Discovery Well in Galveston Bay, Texas

Strategic Insights -

Vintage Petroleum, Inc. (NYSE: VPI) announced the successful drilling of a discovery well in the White Heron South area of Galveston Bay, Texas. The Texas State Tract 84 discovery well reached a depth of 9,918 feet, encountering 36 feet of net pay in a Frio sand. The well is currently producing at a gross daily rate of 12 million cubic feet (MMcf) of gas, with 106 barrels of condensate, indicating high-quality sand and deliverability characteristics.

Key Takeaways:

  • The Texas State Tract 84 discovery well, drilled to a depth of 9,918 feet, encountered approximately 36 feet of net pay in a Frio sand.
  • The well is currently producing at a gross daily rate of 12 MMcf of gas (4.7 MMcf net to Vintage) and 106 barrels of condensate (41 barrels net).
  • The producing zone had a calculated absolute open flow rate of 104 MMcf per day, indicating the high-quality sand and deliverability characteristics of the well.
  • This is the sixth consecutive successful well to be drilled in the Galveston Bay area by Vintage Petroleum and its exploration partner, EEX Corporation.
  • Combined daily gross production from Vintage's Galveston Bay wells totals 68 MMcf of gas (26.5 MMcf net) and 1,270 barrels of condensate (495 barrels net).
  • Vintage operates and has a 50 percent working interest along with its partner, EEX Corporation.
  • Additional drilling activities are planned in the Galveston Bay area, including the completion of the State Tract 6-7A well and the preparation to complete the State Tract 204 well.
  • Vintage controls approximately 30,000 net acres in Galveston Bay and has identified multiple leads and prospects based on a significant 3-D seismic survey.

Statistics:

  • 36 feet of net pay encountered in the Frio sand.
  • 9,918 feet depth reached by the discovery well.
  • 12 MMcf of gas produced per day.
  • 106 barrels of condensate produced per day.
  • 104 MMcf per day calculated absolute open flow rate.
  • 68 MMcf of gas produced per day (combined) by Vintage's Galveston Bay wells.
  • 1,270 barrels of condensate produced per day (combined) by Vintage's Galveston Bay wells.

Sources:

  • Vintage Petroleum, Inc. (NYSE: VPI)
  • Private Securities Litigation Reform Act of 1995
  • PRNewswire
  • Oklahoma Stock Exchange (VPI)