Credo Petroleum Corp., Denver, (Nasdaq: CRED) has made a deeper pool discovery from the Hunton formation in its Ball #1-18 well in Major County, Oklahoma.
           

The 9,750-foot well is on the company’s 1,280-gross acre Pool\Proffitt prospect. Credo owns a 50% working interest and is operator. During the final 24-hour test, the well produced 535 barrels of oil and an estimated 1- to 2 million cubic feet of gas. Shut-in casing and tubing pressures are 2,600 pounds per square inch, indicating virgin bottom-hole pressure. The well is currently shut-in for installation of production equipment.

In addition to the Hunton formation, the company plans to perforate and produce over 150 feet of Mississippian formation and 35 feet of pay with excellent porosity in the Chester formation. However, because the Hunton zone flowed oil at high rates with virgin pressure, completion of the up-hole zones will be delayed in order to more fully evaluate the Hunton zone potential.

Chief executive James T. Huffman says, “It is very unusual for a well to flow oil from a depth of 9,300 feet. The high production rate indicates outstanding reservoir permeability and porosity as well as excellent pressure. Our Pool-Proffitt prospect has multiple productive intervals in the Hunton, Mississippian, Chester, Inola and Red Fork formations which we estimate will require 10 to 12 wells to fully develop.”

The Lemmons #1-7 in Major County is currently being completed in the Mississippian and Chester formations. Credo owns a 73% working interest and is the operator.

Credo is also currently completing a wildcat well on a 2,150-gross acre prospect on the Central Kansas Uplift in which it owns an 85% working interest. The well continues to be classified as a tight hole. In southern Oklahoma, drilling is complete and production casing has been set on a high potential oil well in Carter County in which the company owns a 44% working interest. The Schaff #3 is a twin well to the Schaff #1. The new well will develop two deeper Deese formation oil sands and the Woodford formation, both of which electric logs indicate are productive. Completion operations will commence this week.

Huffman says, “We have recently drilled four successful wells in Oklahoma and Kansas in which Credo owns very substantial working interests, ranging from 44% to 85%. All of the wells are currently in various stages of being completed for production. The drilling and completion data looks very promising, and we believe that these wells have the potential to significantly increase our production and reserves. In addition, offset drilling is scheduled on three of the wells.”

Credo has oil and gas operations the Midcontinent and Rockies regions.