Wentworth Energy Issues Drilling Update and Activity Report
Wentworth Energy, Inc. (OTCBB:WNWG) today issued a drilling update and activity report. The first phase of the on-going drilling program on Wentworth Energy’s 27,557-acre mineral block in East Texas, which commenced in September 2006, had planned for the drilling of up to ten wells over the next 12 to 24 months to develop the Company’s oil and gas reserves. Wentworth Energy is currently preparing to drill its sixth well in the first phase of this drilling program and is set to commence production.
Wentworth Energy reports:
Red Lake Gas Unit #1
The first phase of drilling on the Company’s mineral block began with a re-entry of an existing well, known as Red Lake Gas Unit #1 (#1), to evaluate the Rodessa formation for remaining production. The Company’s primary target, however, was the shallower Woodbine formation. During the re-entry, the well encountered some down-hole problems and Wentworth Energy was unable to re-establish production in the Rodessa. Wentworth Energy decided it was more cost effective to drill a replacement well 100 feet from this well (the Red Lake Gas Unit #1-R) to access the Woodbine formation. The Company is now evaluating the #1 well, which could include using it as a salt water disposal well or the possibility of abandoning it altogether.
Wentworth Energy No. 1 Brakens’
The No. 1 Brakens’ well, Wentworth Energy’s first gas discovery on the mineral block, was completed in November 2006, and a four point test of the well yielded a calculated absolute open flow of 2.1 million cubic feet of gas per day. The independent four point flow test conducted as per Texas Railroad Commission regulations confirmed the commercial viability of the well as a gas producer. Gas flowed from two zones in the Woodbine sand over a gross interval from 4,918 to 4,948 feet. Production facilities have now been completed and the well is now tied into the pipeline. Wentworth Energy is now working out the final details of the gas marketing contracts for production from this well.
Red Lake Gas Unit #1-R
In December 2006, Wentworth Energy completed the successful drilling of the Red Lake Gas Unit #1-R (1-R). The 1-R well is an offset to the No. 1 Brakens’ well. A four point test of the 1-R well yielded a calculated absolute open flow rate of 1.7 million cubic feet of gas per day. Wentworth Energy recently finalized an agreement with the surface land owner to install production facilities and now expects to hook-up to the pipeline tap 300 feet away over the next several weeks. The 1-R well was drilled to a total depth of 5,516 feet and gas flowed from two zones in the Woodbine sand over a gross interval from 5,140 to 5,148 feet.
Red Lake Gas Unit #2-W
The Red Lake Gas Unit #2-W well (2-W) was successfully drilled to a total depth of 5,514 feet and logs were run from total depth to the base of the surface casing. Sidewall cores were taken to analyze several intervals in the Woodbine and Dexter (4,992-5,215′) formations. The 2-W well encountered over 90 net feet of potential pay in the Woodbine formation and successfully extended the limits established by Wentworth Energy’s discovery well (the No.1 Brakens’). However, due to the high production of water in the well Wentworth Energy will now conduct a workover of the well to enhance production and attempt to stop the production of salt water.
Red Lake Gas Unit #3-W
Wentworth Energy’s subsidiary, Barnico Drilling, Inc. recently drilled the Company’s fifth well, the Red Lake Gas Unit #3-W (3-W). The 3-W was drilled to a total depth of 5,507 feet, and the Company expects to begin completion procedures this week. Wentworth Energy intends to perforate the well at between 4,866 and 4,868 feet in the Woodbine sand. The Red Lake Gas Unit #3-W well is located directly between to the 1-R and 2-W wells.
Studdard-Steward “A” #1
Barnico Drilling is currently preparing the site to begin drilling Wentworth Energy’s sixth well, the Studdard-Steward “A” #1, a west offset location of the No. 1 Brakens’ well. Again, the Company will be targeting gas from the Woodbine formation within the same area as the No. 1 Brakens’ discovery well.
Shiloh #1 and Shiloh #3 wells
On February 1, 2007, Wentworth Energy announced that it had acquired a 50% working interest in two producing gas wells from another operator on the mineral block. The Company purchased the interest in these wells to gain access to up to 640 acres of the mineral block that was held by production from the wells and was unavailable to Wentworth Energy for drilling until the Company became an owner of the wells. Both of these wells are deeper wells (~14,000 feet) that are producing from the Bossier sand formation. Wentworth Energy believes there are a minimum of 4 offset locations from these wells that the Company plans to develop in several formations. The Company is currently evaluating the producing zones and has identified some behind pipe pay. The offset locations from these wells would target the shallower Woodbine sand formation. These two wells are located at the south end of the mineral block, south of the Red Lake Gas Unit #1-R well.
According to Tom Temples, Wentworth Energy Vice President of Exploration and Production, “Our drilling program is on target, with each additional well that we drill allowing Wentworth Energy to further develop our oil and gas reserves and offset locations on our mineral block. The first phase of the drilling program has consisted primarily of the successful exploration of the Woodbine formation, leaving the development of other formations such as the Rodessa to future drilling. Wentworth Energy continues to expand its drilling activities and recently had several additional locations permitted for new wells in the Woodbine formation. The Company has also identified and received permitting for several locations to begin development of the Rodessa formation.”
About Wentworth Energy, Inc.
Wentworth Energy is an independent exploration and production company focused on developing North American oil and natural gas reserves. The Company owns a 27,557-acre mineral block in east central Freestone County and west central Anderson County in the active East Texas Basin, as well as an active oil and gas contract drilling company, Barnico Drilling, Inc., which has serviced East Texas drilling demand since the late 1970s. Wentworth, through its subsidiary Barnico Drilling, is focused on rapidly expanding the number of operating wells on its existing acreage in East Texas. Wentworth Energy applies innovative technologies toward the discovery and development of a diverse portfolio of high-value, low-risk energy projects in North America, including the oil and gas fields of East Texas. Wentworth Energy trades under the ticker symbol WNWG. For more information on the Company visit www.wentworthenergy.com
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words “expects,”"projects,”"plans,”"anticipates” and certain of the other foregoing statements may be deemed “forward-looking statements.” Although Wentworth Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release such as “producing,”"production,”"discovery,”"commercial viability,” and “reserves” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form SB-2, File No. 333-136878, and our Form 10-KSB for the fiscal year ended December 31, 2005 and Form 10-QSB for the quarterly period ended September 30, 2006 available from us by contacting the Investor Relations Department. You can also obtain this form from the SEC by calling 1-800-SEC-0330.