1 An Eagle Ford shale horizontal producer has been finaled as part of Eagleville Field by EOG Resources Inc. in Karnes County (RRC Dist. 2), Texas. The #2H Joseph Unit was tested flowing 1,653 bbl. of 45-degreegravity oil, 1.44 million cu. ft. of casinghead gas and 615 bbl. of water per day. Production comes from fracture-stimulated perforations at 10,746-17,693 ft. Gauged on a 28/64-in. choke, the flowing casing pressure was 1,269 psi. The EOG completion is on a 1,126-acre lease in George Elliott Survey, A-101, and was drilled to 7,782 ft. It bottomed to the southeast beneath Bartlett Hickman Survey, A-35. EOG is based in Houston.

2 In Karnes County (RRC Dist 2), Texas, Burlington Resources Oil & Gas Co.’s #1 Ruckman Trust Unit C had an initial flowrate of 1,711 bbl. of 47-degree-gravity oil and 1.16 million cu. ft. of gas from a horizontal Eagle Ford shale well. The discovery is on a 320-acre lease in the Ramon Musquiz Survey, A-7. Fracture-treated perforations are at 12,596-17,556 ft. Tested on a 14/64-in. choke, the flowing tubing pressure was 5,969 psi. The Eagleville Field producer was drilled to a total depth of 17,762 ft., 12,074 ft. true vertical, and bottomed about one mile to the northwest beneath the same survey. Burlington Resources’ headquarters are in Houston.

3 In eastern Gonzales County, (RRC Dist. 1), Texas, EOG Resources Inc. completed an Eagle Ford shale well in Eagleville Field. The #1 S. King Unit was tested flowing 1,536 bbl. of 46-degree crude, 1.57 million cu. ft. of gas and 1,041 bbl. of water per day. Production comes from fracture-stimulated perforations at 10,084-15,583 ft. Gauged on a 32/64-in. choke, the flowing casing pressure was 1,094 psi. The horizontal well was drilled to 15,680 ft., 11,112 ft. true vertical, in Samuel H. Gates Survey, A-228, and bottomed beneath Travis Davis Survey, A-178. According to IHS Inc., this is the ninth Eagle Ford shale well to top the 1,500-bbl.-per-day mark.

4 In Fayette County (RRC Dist. 3), Texas, Southern Bay Operating of Houston reported a horizontal Eagle Ford shale discovery. The #2H Flatonia East Unit was tested flowing 1,242 bbl. of 37.5-degree-gravity crude, 480,000 cu. ft. of gas and 1,102 bbl. of water per day through fracture-treated perforations at 11,308-15,810 ft. The wildcat was tested on a 16/64-in. choke and the flowing casing pressure was 2,850 psi. Located on an 899-acre lease in Miguel Muldon Survey, A-76, the well was drilled to 15,889 ft., 10,677 ft. true vertical.

5 Encana Oil & Gas (USA) Inc. completed a horizontal Bossier shale discovery in Robertson County (RRC Dist. 5), Texas. The #2H Hoyt Gas Unit flowed 9.53 million cu. ft. of gas and 96 bbl. of water per day through fracture-treated perforations at 15,849-20,584 ft. When tested on a 14/64-in. choke, the flowing and shut-in tubing pressures were gauged at 10,521 psi and 10,800 psi, respectively. Located on a 692-acre lease in V. Mendez Survey, A-382, the wildcat was drilled to 20,920 ft. with a true vertical depth of 14,980 ft. Encana’s headquarters are in Calgary.

6 A directional Hackberry discovery by Tyler, Texas-based Lake Ronel Oil Co. was reported in Orange County (RRC Dist. 3), Texas. The #1 Dupont was tested flowing 152 bbl. of 45.1-degree-gravity crude, 649,000 cu. ft. of gas and 67 bbl. of water per day through an open-hole interval at 10,100-11,100 ft. (total depth). Tested on an 8/64-in. choke, the flowing tubing pressure was 3,539 psi. The well is on a 234-acre lease in H.F. Brack Survey, A-245, and the producer bottomed to the northeast beneath the same survey. The company’s #2 Dupont is a direct offset and was also recently completed as a discovery through an openhole interval at 10,194-10,720 ft. in Marginulina after drilling to 10,722 ft. The initial daily potential was 100 bbl. of 46-degree-gravity crude and 453,000 cu. ft. of gas. Tested on a 9/64-in. choke, the flowing tubing pressure was 2,361 psi.

7 According to IHS Inc., Swepi LP completed a horizontal Haynesville shale well as part of Pleasant Hill Field in DeSoto Parish, La. The #1 Caldwell Trust 4H had an initial daily potential of 24.07 million cu. ft. of gas and 1,370 bbl. of water through fracture-stimulated perforations at 13,071-17,590 ft. Gauged on a 27/64-in. choke, the flowing casing pressure was 8,210 psi. Swepi’s new producer is in Section 33-11n-12w and was drilled to 17,652 ft., 12,717 ft. true vertical. Swepi’s headquarters are in Houston.

8 A horizontal Haynesville shale well has been completed as part of Red River-Bull Bayou Field by Chesapeake Operating Inc. The initial daily potential for #1 CHK La Minerals 11H was 15.66 million cu. ft. of gas and 588 bbl. of water through fracture-treated perforations at 12,725-17,194 ft. Gauged on a 22/64-in. choke, the flowing tubing pressure was 7,760 psi. The DeSoto Parish, La., completion is in Section 11-13n-12w and was drilled to 17,295 ft., 12,472 ft. true vertical. Chesapeake is based in Oklahoma City.

9 McMoRan Exploration reported that the company found hydrocarbon-bearing sands at the company’s Lafitte exploratory test, #1 (BP) OCS G21640, on Eugene Island Block 223. Wire-line logs indicate that Miocene sands below 24,300 ft. appear to be hydrocarbon bearing and the various thicknesses total 200 ft. The company added that the Lower Miocene-aged sands correlate to sands seen onshore and in the deepwater Gulf of Mexico. The Lafitte exploratory test is McMoRan’s third ultra-deep prospect to encounter Miocene-age sands below the salt weld on the Gulf shelf. McMoRan plans to deepen the well to a proposed total depth of 29,950 ft. to evaluate deeper Miocene objectives and possibly the Oligocene section. The New Orleans-based operator holds a 72% stake in Lafitte. Other interest owners include Energy XXI (18%) and Moncrief Offshore LLC (10%).

10 According to IHS Inc., Woodside Energy Inc., based in Perth, won federal approval to drill an exploratory test on Green Canyon Block 451, a previously undrilled tract known as the company’s Floyd prospect. Under the OCS G32509 lease, one deepwater wildcat is planned for a surface location in the northwestern portion of Block 451. Water depth in the area is 3,100 ft. The drilling rights to the block were acquired by partners Wood-side (42%), Newfield Exploration Co. (42%) and Stone Energy Corp. (16%). Wood-side operates several tracts in this part of the Green Canyon area. Along with blocks 451 and 452, the company holds the drilling rights to Block 453 (OCS G28079), and blocks 496 (OCS G28081) and 497 (OCS G28082).

11 According to IHS Inc., Chevron hit 380 ft. of net pay in Lower Tertiary Wilcox sands at the company’s Moccasin prospect in the Keathley Canyon area. Houston-based Chevron’s #1 OCS G22367 was drilled to 31,545 ft. in 6,750 ft. of water. Well results are being evaluated, and additional work is being performed to determine the extent of the resource. Chevron, with a 43.75% working interest in the prospect, operates the Moccasin discovery. Other Moccasin owners are BP (43.75%) and Sam-son Offshore (12.5%).

12 A deepwater appraisal well in Mad Dog Field was completed by Melbourne, Australia-based BHP Billiton. The #1 OCS G16786 is on Green Canyon Block 738 and encountered 166 net ft. of hydrocarbons in the objective Miocene hydrocarbon-bearing sands and discovered an oil column of more than 300 ft. The well was drilled to 23,305 ft. Pending confirmation of future appraisal drilling, the total hydrocarbons initially in place in the Mad Dog Field complex are now estimated to be up to 4.01 billion bbl. of oil equivalent. Partner BP owns a 60.5% stake in Mad Dog, BHP Billiton owns 23.9% and Chevron holds a 15.6% interest in the deepwater field.

All data in the Exploration Highlights section is based on sources believed to be reliable, but its accuracy cannot be guaranteed. The prudent investor intending to act upon any particular data is urged to verify it with all other available sources. In no way should the publication of these items be construed as an express or implied endorsement of a company or its activities.

Most land in the U.S. is divided into townships—rectangular tracts six miles square. The township, in turn, is divided into 36 numbered sections, each a one-mile square. The lines running north-south and dividing east from west are called range lines. The lines running east-west and dividing north from south are township lines.

A well in Section 15-Township 4 north-Range 3 east is abbreviated: 15-4n-3e