After reaching total depth, the well was logged and Company engineers met with log analysts from Schlumberger and consulting geologists to review the open-hole logs and make recommendations for the completion of the well.
After evaluation by Schlumberger and Company personnel, the operational decision was made to complete the well in the Rodessa formation.
The well is presently in initial stages of production testing.
The drilling and completion of the E. Cantrell #1 well was funded by two general partnerships sponsored by the Company. The partnerships hold a majority working interest in the E. Cantrell #1 prospect. The Company holds a 0.05037% working interest (0.03777% net revenue interest), inclusive of its interests in the general partnerships.
Yakesch Unit: In August 2012, the Company acquired a 100% working interest (78-80% net revenue interest) in the 130.49-acre Yakesch Unit in Milam County, TX. The lease includes one vertical well, which is in the process of being re-completed and is not producing hydrocarbons. The lease is being further developed with the drilling of the Yakesh 2-H horizontal well primarily by two partnerships sponsored by the Company. Operations management believes that there is the potential for the drilling of one additional vertical well on the Unit.
WT Pearson Lease: In October 2012, the Company acquired the WT Pearson Lease in Milam County, TX. The lease is comprised of approximately 200 net acres, and includes 36 existing wellbores that were drilled to the Navarro sands. A few of these wells are producing very small amounts of oil. The Company is in the process of checking each of these wellbores to attempt to determine their capabilities, if any.
The wells had combined total production for the fourth quarter of 2012 of approximately 160 barrels of oil. To date, work performed on the lease by the Company has been limited to deferred maintenance and basic remedial operations.
The Company owns an 87.5% working interest (65.625% net revenue interest) in the lease. The development plan for the lease includes the strategic deepening of certain of the wells along with the initiation of a "pressure maintenance" program. It is estimated that there may be up to 12 additional prospective well locations on the lease.
Clark Lease, Milam County, TX: In October 2012, the Company acquired a 45% working interest, (33.75% net revenue interest) in the Clark Lease, and, in order to test the Pecan Gap formation, participated with an industry partner in the drilling of the Clark #1 well to a depth of 2,000'. The well is currently being tested for completion. The lease is comprised of approximately 198 net acres, and is contiguous with the Company's 200-acre WT Pearson lease. It is estimated that up to 20 additional drilling locations may be available on the lease.
Pearson River Bottom Ranch Lease - Milam County, TX: In October 2012, the Company acquired a 45% working interest, (33.75% net revenue interest), in the Pearson River Bottom Ranch Lease, which consists of approximately 5 net acres. In order to test the Pecan Gap formation, the Company has participated with an industry partner in the drilling of the Pearson C1 well to a depth of 1,800'. The well is currently being tested for completion. The lease is contiguous with the Company's 200-acre WT Pearson lease.
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