HOUSTON, Oct. 19 /PRNewswire/ -- KCS Energy, Inc. (NYSE: KCS) today
provided an update on results of its 1999 drilling program in the Permian
Basin, where the Company has been successful in six of the eight wells drilled
year to date, a 75% success ratio. "The success of our Permian Basin program
validates the Company's strategy of focusing its key technical people on a
limited number of core areas where we have competitive advantages. As part of
that strategy, we elected earlier this year to defer drilling many of the
existing prospects in inventory and redirected a portion of our limited
capital budget to capture new opportunities available because of low commodity
prices. The West Shugart Field (discussed below) is an example of one of the
new opportunities we were able to pursue," stated KCS President and Chief
Executive Officer James W. Christmas. KCS currently has two rigs running in
the Permian Basin and expects to spud up to six additional wells within this
basin by year end.
In the West Shugart Field in Eddy County, New Mexico, KCS recently
completed the fourth well drilled this year. The West Shugart 19 Federal #5
was placed on production flowing from the Second Bone Spring Dolomite
formation at a rate of 360 barrels of oil per day (BOPD) with a flowing tubing
pressure of 175 psi on a 32/64-inch choke. KCS operates this well and owns a
100% working interest. Ultimately, the well will be restricted to a statewide
allowable rate of approximately 230 BOPD. The West Shugart Field, in which
KCS has an average 91% working interest, is currently producing approximately
900 BOPD and 500,000 cubic feet per day (MCFPD) gross. KCS plans to drill two
more wells in this field in 1999 with additional development planned in 2000.
KCS also has a 50% working interest in the High Top Fee #1 in Lea County,
New Mexico, which was recently completed as a flowing oil well from the
Devonian formation at a rate of 120 BOPD with 175 psi flowing tubing pressure
on an 8/64-inch choke. This well is the second successful completion in the
area with additional locations targeted for drilling in 2000.
In addition, KCS has a 40% working interest in the Parkway #16-1 located
in Eddy County, New Mexico, which was drilled and completed earlier this year.
This well is currently producing from the Morrow formation at a rate of 2,250
MCFPD.
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, SVP and Chief Operating
Officer of KCS Energy, Inc., 713-877-8006; or General Info,
Marianne Stewart, 212-661-8030, Analysts, Beth Lewis,
617-342-7003, or Media, Claudine Cornelis, 212-661-8030, all of
The Financial Relations Board
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