Harken Energy Corporation’s (AMEX:HEC) wholly owned subsidiary, Gulf Energy Management Company (“GEM”), released updated production figures and well completion status for its domestic oil and gas operations located onshore and offshore the Texas and Louisiana Gulf Coast, and its Coalbed Methane Prospects (CBM) located in Indiana and Ohio.
As of July 17, 2006, GEM’s net domestic production rate was at approximately 7.95 million cubic feet equivalent of natural gas per day. “We are pleased to have surpassed the production levels achieved prior to the effects of the 2005 hurricane season. We are also excited about our anticipated 2006 opportunities for the remainder of the year,” said GEM President Jim Denny.
Lake Raccourci Field, Lafourche Parish – Louisiana
GEM holds a 40% operated working interest in each of its Lake Raccourci wells. Gross production for this field is approximately 2.8 million cubic feet equivalent of natural gas per day. The State Lease 14589 #2 well is currently shut-in, but GEM has performed a successful workover to repair the State Lease 14589 #2 well. Perforation of the well to re-establish production is scheduled to be completed by the end of July 2006. Estimated gross production from the State Lease 14589 #2 well is expected to be about 4.0 million cubic feet equivalent of natural gas per day. This well could potentially increase gross production for this field to 6.8 million cubic feet equivalent of natural gas per day up from approximately 2.8 million cubic feet equivalent. GEM is presently seeking industry partners to drill a field extension well.
Point-au-Fer Field, Terrebonne Parish – Louisiana
GEM owns a 12.5% non-operated working interest in this approximate 56 square miles area. GEM participated in the drilling of two wells in this field during the six months ended June 30, 2006. The first well is now producing at about 2.75 million gross cubic feet equivalent of natural gas per day. The second well has been logged and cased. A completion rig is anticipated in the fourth quarter of 2006.
During the same period, one workover and recompletion of an existing well was successfully executed, and the well is producing at approximately 1.1 million gross cubic feet equivalent of natural gas per day. A second workover on an additional existing well is planned for the third quarter of 2006. Several prospects have been identified in the area, and GEM expects to have additional drilling and workover activity in this area during 2006.
Allen Ranch Field, Colorado County – Texas
GEM owns an 11.25% non-operated working interest in this area. The initial well, the Hancock Gas Unit # 1, was productive in four sands and has increased its production from 2.5 million to approximately 5.0 million gross cubic feet equivalent of natural gas per day. A second well, the Hancock Gas Unit #2, was drilled and logged as productive in the same four sands as the Hancock Gas Unit # 1 well and two deeper zones were also logged as productive. During 2006, the deeper of the two zones has been fracture stimulated and produced about 5.0 million cubic feet equivalent of natural gas per day. This zone has now been shut-in to test the other productive zone in the well bore.
During the second quarter of 2006, the second zone of the Hancock Gas Unit #2 has been perforated, fracture stimulated, and tested at commercial rates. Two other zones have now been fracture stimulated and tested. Once testing is competed, a temporary bridge plug will be removed and the various horizons commingled for long-term production. Stabilized production rates should be established during the fourth quarter of 2006.
Branville Bay Field, Plaquemines Parish – Louisiana
During the second quarter of 2006, this non-operated property has been returned to pre-hurricane production rates of about 2.9 million gross cubic feet equivalent of natural gas per day. GEM has a non-operated working interest of 12.5% in this area.
Point-a-la-Hache Field, Plaquemines Parish – Louisiana
During the second quarter of 2006, repairs to the production barge at this field were completed, however the current producing zone subsequently watered out. GEM is scheduled to perform a tubing recompletion on this current zone once the workover unit barge is received at the location. GEM estimates this work to be completed by the end of July 2006. GEM maintains a 25% operated working interest in the area.
Lapeyrouse Field, Terrebonne Parish – Louisiana
GEM holds an average non-operated working interest of 8.2% in eight wells in this field. During the six months ended June 30, 2006, GEM has participated in two workovers in the field. Current gross field production is about 23.5 million cubic feet equivalent of natural gas per day. Also in 2006, GEM participated in the drilling of their ninth well in this field, and this well has been recompleted to the next productive sand and is producing about 3 million cubic feet equivalent of gross natural gas per day. GEM holds an approximately 39% operated working interest in this ninth well.
Coalbed Methane Prospects – Indiana and Ohio
In 2005, after the submission of a Phase I core evaluation report by the technical consultant, GEM elected to proceed and fund pilot well drilling under Phase II of the agreement. GEM is experiencing limited availability of needed equipment in order to move forward with the pilot program. However, GEM still expects the drilling of the pilot wells to occur during the third quarter of 2006.
Ohio Cumberland Prospect
Core samples from the Ohio CBM prospect are being analyzed for gas content, gas composition and characteristics of the coal. Depending on final results and availability of equipment, GEM may elect to schedule drilling of pilot wells on its Ohio CBM prospect area during 2006.
Harken Energy Corporation is engaged in oil and gas exploration, development and production operations both domestically and internationally through its various subsidiaries and investments. Additional information may be found at the Harken Energy Web site, www.harkenenergy.com. Please email all investor inquiries to HECinquiries@ctapr.com.
Certain statements in this announcement regarding future expectations, objectives, intentions and plans for oil and gas exploration, development and production such as “may,” “potentially,” “expects,” and similar terms may be regarded as “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management’s current view and plans, however, are subject to numerous known and unknown risks, further testing and analysis, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Harken to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company’s SEC filings, including the Quarterly Report on Form 10-Q, for the three months ended March 31, 2006. Harken undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
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Source: Harken Energy Corporation