|
|
| Costilla's Newest Speaks Well Ramps Up Field Production to 35 MMCFD |
Company's Fifth Speaks Well Flowing at Initial Rate of 3.4 MMCFD
Production from Pita Field Continues Climb
Pioneer Acquisition Progressing on Schedule
MIDLAND, Texas, Oct. 13 /PRNewswire/ -- Costilla Energy, Inc.
(Nasdaq: COSE) announced today that production from the Southwest Speaks Field
has increased to 35 million cubic feet of natural gas per day (MMCFD) with the
addition of production from its fifth well drilled, fourth currently
producing, on the project. The Pilgreen #1 is currently producing gas from
Lower Wilcox sands at the initial rate of 3.4 MMCFD, with flowing tubing
pressure of 8,190 pounds on a 10/64-inch choke. Costilla has two additional
Speaks wells in progress, and has identified eight other locations for
drilling on this property. The Company recently acquired an interest in
approximately 1,000 contiguous acres on which analysis of 3-D seismic data
indicates a number of additional new drilling locations. This addition brings
Costilla's current leasehold position in the prolific Southwest Speaks Field
to approximately 12,000 gross acres.
Costilla also reported that it has successfully completed two new wells in
its drilling project in the Pita Field in the far south Texas area of Brooks
County. These two new wells are currently producing approximately 1.8 MMCFD,
bringing production from the field to approximately 3.8 MMCFD, an increase of
about 150 percent since the Company acquired the Pita Field property in
January 1998.
The Company's average daily production for the first two months of the
third quarter ended September 30, 1998, was approximately 82 million cubic
feet of natural gas equivalent per day (MMCFEPD). Exiting the third quarter,
daily production was approximately 85 MMCFEPD. The Pilgreen #1 and the two
additional Speaks wells currently in progress were previously anticipated to
commence production during the company's third fiscal quarter. The Company
now expects the two additional wells, which are being drilled directionally
targeting multiple pay sands, to begin production midway through the fourth
quarter.
Costilla's recently announced transaction involving the acquisition of
certain assets from Pioneer Natural Resources (NYSE: PXD; Toronto), is
progressing on schedule for closing in mid-December, with an effective date of
October 1, 1998.
Costilla Energy, Inc. is an independent energy company actively engaged in
the exploration, acquisition and development of oil and gas properties, with
operations primarily in the Permian Basin of Texas and New Mexico, South and
East Texas, and the Rocky Mountain regions. Headquartered in Midland, Texas,
the Company and its predecessors have been in business since 1988. The
Company's common stock is traded on the Nasdaq National Market under the
symbol COSE.
Certain statements in this news release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results,
performance, or achievements of Costilla Energy, Inc. to be materially
different from any future results, performance, or achievements expressed or
implied by such forward-looking statements. Such factors include, among
others, the following: the volatility of oil and gas prices; the Company's
ability to replace its oil and gas reserves; the availability of capital
resources; the reliance upon estimates of proved reserves; operating hazards
and uninsured risks; competition; government regulation; and the ability of
the Company to implement its business strategy. Additional information is
available in the Company's filings with the Securities and Exchange
Commission, which are incorporated by this reference as though fully set forth
herein.
SOURCE Costilla Energy, Inc.
back to topRelated links:
Company News On-Call:
800-758-5804, ext. 126873
CONTACT:
Mike Grella, President & CEO, or Guy McCrary,
Manager - Investor Relations, 915-683-3092, both of Costilla
Energy, Inc.
