Pegasi Energy Resources Corp. (PGSI) is pleased to announce the initial production results of its first horizontal well in Cass County, Texas. The completion of the Morse Unit # 1-H involved hydraulic fracturing of the well's 2,000 ft horizontal borehole in five stages. Baker Hughes field services performed the hydraulic fracturing operations in late June using their proprietary Frac-PointTM fracture completion system. The Company holds a 56% working interest in the well.

In its first five days of continuous production, the well produced a total of 1,404 Bbls of oil ...