Friday, January 6, 2012

Crimson Exploration, Inc. (CXPO) Issues Oil and Gas Operational Update, Sets 2012 Capital Budget

Crimson Exploration, Inc. issued an operational update on its oil and gas activities in the United States. The company is active in various onshore plays, including the Woodbine, Eagle Ford Shale, Lower Cook Mountain and Niobrara formations.

Crimson Exploration reported that the company has spud its first well targeting the Woodbine formation. The well is located in Madison County, Texas, and will be drilled to a total measured depth of 16,900 feet, with a 7,500 foot lateral.

Crimson Exploration estimates that drilling activity on this well will take approximately 35 days, after which completion operations will begin. The company expects first production from this well in March 2012.

Crimson Exploration reported first production from a recent well drilled into the Lower Cook Mountain formation in the same area. The company said that the gross daily rate of production from this well was 9.3 million cubic feet of natural gas equivalents. This production was composed of 6.3 million cubic feet of natural gas, 87 barrels of oil and 412 barrels of condensate.

Crimson Exploration has established a $74 million exploration and development budget for 2012, and plans to focus most of the company’s efforts on the Woodbine and Eagle Ford Shale formations.

For more information on the company, go to http://www.crimsonexploration.com

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