HOUSTON, Oct. 3 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
provided an update on its third quarter 2001 drilling activities:
Mississippi Salt Basin
The exploratory Miller Price #1 in Jones County, Mississippi (North
Moselle Prospect) tested at 636 barrels per day (BPD) of 45 degrees gravity
oil and 775 thousand cubic feet per day (MCFPD) gas from a Cotton Valley aged
formation. The well was placed on production on September 28th. KCS has a
10% working interest (WI). A stepout well has begun drilling to determine the
extent of the reservoir.
The extensional Williams #1 well, also in Jones County, Mississippi (South
Moselle Prospect) logged two Hosston aged pay sands with over 50 feet of
apparent pay and will be tested in the next few weeks. KCS has a 25% WI in
this prospect.
South Texas
The Company participated in four exploratory discoveries in South Texas
during the third quarter. The first well logged three Wilcox aged zones with
over 50 feet of pay and recently tested at 1,500 MCFPD from the bottom zone
(KCS 20% WI). The second well (KCS 37.5% WI) found four pay intervals with
approximately 160 feet of Wilcox pay. The lowermost zone tested at 2,600
MCFPD and is awaiting fracture stimulation. The third well (KCS 25% WI) found
a number of Wilcox zones and was perforated last week. It is currently
producing at 2,440 MCFPD. The fourth well in Lavaca County, Texas (KCS 30%
WI) logged a Wilcox aged pay zone and is producing at an unstimulated rate of
820 MCFPD and 13 BPD of condensate.
The infill Eudoxio Martinez Gas Unit #11 in Starr County, Texas (KCS 15.4%
WI) was completed in a Lobo sand and is producing at a rate of 1,140 MCFPD.
Mid-Continent
The extensional Johnson 3 #1 well in Ouachita Parish, north Louisiana (KCS
75% WI) was recently brought on line at an initial rate of 2,080 MCFPD and 72
BPD of condensate from a Cotton Valley zone.
KCS participated in an extensional Borum sand completion in Yell County,
Arkansas (KCS 25% WI), which tested at 2,755 MCFPD. Initial sales are
anticipated in mid-October.
The Company continued its Sawyer Canyon Field development program in
Sutton County, Texas (KCS 91-100% WI) where it completed three additional
Canyon Sandstone wells, which are producing at a combined rate at 1,800 MCFPD.
In addition, the Company has a multi-well drilling program ongoing at the
Battle Creek Field in central Montana and expects to begin a multi-well
drilling program in the Elm Grove and Calhoun fields in north Louisiana in
early 2002. Twenty wells have been drilled in 2001 at the Battle Creek Field
and are shut in awaiting completion or pipeline connection.
Commenting on the drilling results, William N. Hahne, Sr. Vice President
and Chief Operating Officer noted, "We continued to maintain an active and
successful drilling program in the third quarter. Although our technical
staff continues to build our drilling inventory and we have a cash balance in
excess of $25 million, we have planned to reduce the level of rig activity in
the fourth quarter in response to the current lower price environment for
natural gas and oil."
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 .
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, Chief Operating Officer of
KCS Energy, Inc., +1-713-877-8006; or General, Marilyn Meek,
+1-212-445-8451, Analysts, Beth Lewis, +1-617-369-9242, or Media,
Judith Sylk-Siegel, +1-212-445-8431, all of The Financial
Relations Board BSMG Worldwide
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