HOUSTON, Feb. 7 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
announced the results of its fourth quarter 1999 drilling programs. In total
33 wells were drilled, of which 32 were successful for a 97% success ratio.
"The success of our drilling program in the fourth quarter and throughout
1999 confirms the Company's strategy of focusing people and limited resources
on the core areas where we have competitive advantages -- the Gulf Coast and
the Mid-Continent regions," according to KCS President and Chief Executive
Officer James W. Christmas. The Company drilled 8 wells in the Onshore Gulf
Coast and 25 wells in the Mid-Continent area in the fourth quarter. Ten of
these wells are still in the completion phase and will be placed on production
within the next month.
"Our 1999 drilling program yielded the type of results we anticipated. In
total, KCS participated in 75 wells in 1999, with an 85% success ratio. The
2000 capital spending program has been established with a continuing emphasis
on the Mid-Continent and Gulf Coast regions. The program is off to a good
start with seven rigs currently working," Mr. Christmas noted.
Gulf Coast Program Highlights
Gulf Coast activities are concentrated in South Texas and the Mississippi
salt basin. In South Texas, KCS participated with a 40% working interest in
four successful Roche Ranch wells that logged a combined 182 net feet of Frio
aged pay. KCS also drilled the Horelica #1 well in Fort Bend County, Texas,
with a working interest of 50% that extended the southeast limits of the
Cooley Field with 37 feet of Wilcox pay at 13,000 feet.
In Covington County, Mississippi, KCS participated with a 25% working
interest in the Robertson 21-9 #1 well which was an 18,500-foot Cotton Valley
new field discovery. The well flowed at 312 barrels of oil per day (BOPD),
477 thousand cubic feet of gas per day (MCFGPD) and no water on initial test.
All of the new Gulf Coast wells are in various stages of being tied into
existing infrastructures and should be on production within the next month.
Mid-Continent Program Highlights
In the Mid-Continent area, KCS activities are focused on the Permian,
North Louisiana and Oklahoma basins. Four development wells were drilled in
the Company's 100% Sawyer Canyon Field in Sutton County, Texas, and are on
line at a combined rate of 3,800 MCFGPD. Two additional wells were drilled in
the successful West Shugart Field in Eddy County, New Mexico, and are
currently flowing at 450 BOPD and no water. KCS completed seven West Shugart
producers in 1999. The East Vermejo #1, located in Ward County, Texas, was
completed in the Atoka sand at an initial rate of 3,300 MCFGPD with a flowing
tubing pressure (FTP) of 2700 psi. KCS has a 25% working interest in this
well.
In Oklahoma, KCS drilled the Gas #2 well in Washita County, Oklahoma, with
a 93% working interest. This well tested at 312 BOPD and no water from
67 feet of Springer pay. In the same county, KCS drilled and completed the
Billingsley #1 well, which tested 2,000 MCFGPD with an FTP of 1,000 psi from
several commingled Granite Wash sand intervals. KCS owns a 100% working
interest in this well. The Company also has continued the development of the
Elm Grove Field in North Louisiana with the drilling of the 100% Roos #8 well.
This well was completed in two Cotton Valley sands and produced at an initial
rate of 2,300 MCFGPD at 1250 psi FTP.
KCS is an independent energy company engaged in the acquisition,
exploration, development and production of natural gas and crude oil with
operations in the Mid-Continent and Gulf Coast regions. The Company also
purchases reserves (priority rights to future delivery of oil and gas) through
its Volumetric Production Payment (VPP) program. For more information on KCS
Energy, Inc., please visit the Company's web site at
http://www.kcsenergy.com .
To receive KCS' latest news and other corporate developments via fax at no
cost, please call 1-800-PRO-INFO. Use company code KCS. See also
http://www.frbinc.com .
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Among the important factors that could
cause actual results to differ materially from those indicated by such
forward-looking statements are delays and difficulties in developing currently
owned properties, the failure of exploratory drilling to result in commercial
wells, delays due to the limited availability of drilling equipment and
personnel, fluctuations in oil and gas prices, general economic conditions and
the risk factors detailed from time to time in the Company's periodic reports
and registration statements filed with the Securities and Exchange Commission.
SOURCE KCS Energy, Inc.
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Related links:
http://www.kcsenergy.com
CONTACT:
William N. Hahne, Sr. V.P. and Chief
Operating Officer of KCS Energy, Inc., 713-877-8006; or General
Info, Marianne Stewart, 212-661-8030, Analyst, Beth Lewis,
617-369-9240, or Media, Claudine Cornelis, 212-661-8030, all of
The Financial Relations Board
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