FORT WORTH, Texas, March 30 /PRNewswire/ -- Snyder Oil Corporation
(NYSE: SNY) today announced that it has completed the testing operations of
its first Troy Lime pinnacle reef test, the Bozeman No. 1 in Winn Parish,
Louisiana, and determined that the well is not commercial. The Company has
elected to plug and abandon the well and will record a dry hole expense of
$9 million.
A second pinnacle reef test, the Frazier No. 1, located five miles
southwest of the Bozeman, is currently drilling below 14,000 feet with a
targeted total depth of 16,500 feet. Snyder is the operator and owns
one-third working interest. Other working interest owners are Cox and Perkins
Exploration, Inc. and Seitel, Inc., through its wholly owned subsidiary, DDD
Energy, Inc., each with one-third interest in the well.
John Snyder, Chairman and Chief Executive Officer of the Company, stated,
"After having been encouraged from logs, cores and shows, the Bozeman test
results are a disappointment. We currently do not have a sufficient
understanding of these reefs. After we get the results of the Frazier, we
will integrate all our information and see where we stand on the reef play.
This may result in changing its priority relative to other targets we are
pursuing in North Louisiana, including the lower Hosston and Cotton Valley
sands, both of which have recently yielded impressive wells."
Other North Louisiana --
The SOCO 16-1 in Caldwell, Parish was put on production in late January
1999 and continues to produce at three million cubic feet of gas per day.
This is the Company's first well drilled to test the lower Hosston in the
Cotton Plant field. The Company will continue to evaluate the performance of
the well and test correlative intervals in existing nearby wells before
further development is proposed. The Company owns a 100 percent working
interest in the well.
In the Gray Sand project in Bossier Parish, the Deltic Timbers No. 1,
while unsuccessful in the Gray sand, has been completed uphole in the Cotton
Valley sand at 9,300 feet. The well tested over three million cubic feet of
gas equivalents per day. Currently, it is awaiting pipeline connection and is
expected to be placed on production in April. The Company owns 100 percent
working interest in the well.
Gulf of Mexico Flex Trend Program --
Firebird, the final prospect in the Texaco Flex Trend drilling program,
located in Mississippi Canyon Block 661, is a success based on well logs. The
well has been drilled through the primary Pliocene objective to a measured
depth of 13,250 feet and suspended awaiting completion, most likely as a
subsea tie-back to an existing platform. An additional deeper target is
expected to be drilled later. The Company has a 25 percent working interest
in the prospect.
At the Specter Flex Trend discovery, the first development well is
currently being drilled from Shell's Spirit platform. The Viosca Knoll 779
A-5 well is expected to reach a total measured depth of 19,150 feet and be
placed on production in the second half of the year. A second development
well is expected to be drilled in late 1999. The Company has a 12 percent
working interest in both wells.
Snyder is engaged in the production, development, acquisition, and
exploration of domestic oil and gas properties, primarily in the Gulf of
Mexico, the Rocky Mountains and northern Louisiana. The Company also has
investments in two international exploration and production companies, Cairn
Energy plc and SOCO International plc. The Company's shares are traded on the
New York Stock Exchange under the symbol SNY. Snyder's news releases and
other information about the Company can be found on the Internet at
http://www.snyderoil.com.
This release contains certain forward looking statements which are based
on assumptions which the Company believes are reasonable, but which are
subject to a wide range of uncertainties and business risks. Factors that
could cause actual results to differ materially from those anticipated are
discussed in the Company's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 1998.
SOURCE Snyder Oil Corporation
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Related links:
http://www.snyderoil.com
Company News On-Call:
http://www.prnewswire.com/comp/118962.html or fax,
800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937
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