Millennium Exploration Company Announces Two Large Natural Gas Discoveries in Early Fourth Quarter of 2010
Millennium Exploration Company, a Texas based independent oil and natural gas producer, announces Wednesday, November 10, 2010 two large natural gas discoveries in the Texas Gulf Coast.
Millennium Exploration Co. partnered with, Dallas based, O’Tool Oil and Gas, L.L.C has made a significant natural gas discovery well in Jackson County, Texas: The Shoop-Shefcik 3-D #1 Well. Using the latest in 3-D Seismic technology, Millennium and O’Tool were able to successfully map and drill the highly prolific Yegua formation that, in most cases, is over pressured and has very high daily production rates. The Shoop well, during drilling operations experienced several significant gas kicks including a gas kick that peaked at almost 5,000 units of gas! “In several years of drilling oil and gas wells the largest gas kick I have ever witnessed was about 1,800 units… to see the Shoop well violently kick out almost 5,000 units was very encouraging” says Millennium’s CEO, Mr. Richard Monroy. After electronically testing the Shoop well it was realized that the Yegua Formation had better than 35% porosity, compared to an average of about 25% porosity, giving it the ability to possibly outperform its original projections. “If all keeps up the way it has been going, it would not be unusual to see the Shoop well produce as much as $450,000 per month in gross revenue” says Millennium’s Senior Vice President, Mr. Theo J. Jahns.
Millennium along with its long time partner Mission River Systems, Inc., based in Corpus Christi, Texas have successfully offset their long time producing well, The Dorsogna #1. Originally producing almost 1,300,000 cubic feet of gas and about 20 barrels of oil per day, the Dorsogna #1 has been a consistent and low maintenance producer for over two years now. The drilling of the Dorsogna #4 offset well was necessary to completely deplete the multiple reservoirs found by the original Dorsogna #1 Well. “Based on surrounding production and the results from the Dorsogna #1, my estimate is that the Dorsogna #4 can produce as much as 1,300,000 cubic feet of gas and 20 barrels of oil per day, which at today’s prices could be as much as $200,000 per month in gross revenue” explained Mr. James Ramirez who serves as Millennium’s Vice President of Investor Relations.
Collectively these two prospects can account for a significant source of monthly income not only for Millennium and its industry partners, but for its private investors as well. Still to be drilled in the fourth quarter of 2010 are the Grayburg and Cadena wells of the Black Lake Joint Venture and the more ambitious; Porter’s Creek 3-D and Chips 3-D Prospects which will have the advent of the latest in 3-D Seismic imaging and 3-D Seismic reprocessing technology available in the oil and gas industry.