FORT WORTH, Texas, Sept. 29 /PRNewswire/ -- Snyder Oil Corporation
("SOCO") (NYSE: SNY) along with its partners, Cox & Perkins Exploration, Inc.
and Seitel, Inc. (NYSE: SEI) through its wholly-owned subsidiary DDD Energy,
Inc., today updated the status of their first Upper Jurassic Troy Lime
pinnacle reef test in north Louisiana. The Bozeman et al No. 1 in Winn
Parish, Louisiana was successfully drilled into a reef complex identified and
targeted on 3-D seismic at its expected total depth of 16,200 feet. The well
penetrated a carbonate section approximately 800 feet thick containing several
reefal sequences. Core samples exhibit intervals of visible porosity and the
well logs indicate a substantial thickness of potential reservoir quality
rock. Heavy drilling fluid was used to prevent any potential flow from the
well bore but gas shows were more or less continuous. These factors establish
a high probability, but not a certainty, that the well could be completed as a
gas discovery. The complexity of the rock formation is such that actual
testing is required to evaluate and prove, or disprove, productivity.
As announced on August 21, SOCO was expecting to complete the well and
announce results of production testing by the end of September. However, in
the process of cementing a 5" liner at the bottom of the wellbore, and prior
to any tests being conducted, mechanical problems were encountered and
1,800 feet of drill pipe were inadvertently cemented inside the wellbore.
Remedial operations were attempted for the last four weeks with limited
success. As a result, operations have now been suspended to allow time for
further evaluation of the mechanical problems associated with the well.
Alternatives include a resumption of remedial activity, sidetracking the
wellbore, abandoning the wellbore and re-drilling the entire well.
In the meantime, SOCO and its partners have elected to drill an
exploratory well on a second reef prospect in the immediate area of the
Bozeman and are in the process of obtaining the necessary permits. In
addition, the partners have added to their acreage holdings in the area.
SOCO's President and Chief Operating Officer, William G. Hargett,
commented, "To be successful in hitting a reef on our first well in the play
and be so close to testing it, yet not able to, is both disappointing and
frustrating. At the same time, the array of information gained about the reef
from drilling, coring and logging, has increased our confidence in the play.
We have invested five years in geoscience, conducted three 3-D seismic surveys
and identified approximately 40 reef prospects -- all on acreage we control.
Moreover, if the reef play works, we would expect it to expand, and we also
would expect the ongoing activity to provide a continuous stream of geologic
information to spur activity in other types of plays in north Louisiana where
we control over 500,000 acres. We expect a high level of activity as we
pursue these exploration and development opportunities for the next several
years and remain optimistic that we can exploit our leading technical and
acreage positions to add significant reserves to the Company."
Snyder Oil Corporation is the operator of the Bozeman and owns
33-1/3 percent working interest. Other working interest owners are Cox &
Perkins Exploration, Inc. and Seitel, Inc. through its wholly-owned subsidiary
DDD Energy, Inc., each with 33-1/3 percent.
SOCO is engaged in the production, development, acquisition, and
exploration of domestic oil and gas properties, primarily in the Gulf of
Mexico, the Rockies and northern Louisiana. The Company also has investments
in two international exploration and production companies, SOCO International
plc and Cairn Energy plc. The Company's shares are traded on the New York
Stock Exchange under the symbol "SNY." SOCO 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, 1997.
SOURCE Snyder Oil Corporation
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Related links:
http://www.snyderoil.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil, 817-882-5937
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