Crimson Exploration Inc. Provides Woodbine and Buda Drilling Update

HOUSTON–(BUSINESS WIRE)– Crimson Exploration Inc. (NasdaqGM: CXPO) announced today the successful completion of the Nevill-Mosley #1H (82.0% WI), its first Woodbine oil well in the 2013 capital program, at a gross initial production rate of 1,164 Boepd, or 1,021 barrels of oil, 77 barrels of natural gas liquids and 392 mcf, on a 42/64^th choke. The well was drilled to a total measured depth of 15,192 feet, including a 6,041 foot lateral, and was completed using 22 stages of fracture stimulation.

Approximately 1.7 miles east of the Nevill-Mosley, Crimson drilled the Mosley B #1H well (82.8% WI), targeting the Woodbine formation, to a total measured depth of 15,366 feet, including an approximate 6,050 foot lateral. Crimson anticipates completing the well with approximately 22 stages of fracture stimulation with first production expected towards the end of April.

The drilling rig has just moved one mile to the east of the Mosley B #1H to the Payne B #1H (83.5% WI) well. The Payne B #1H, targeting the Woodbine formation, is currently drilling at 2,300 feet toward a total measured depth of 15,740 feet, including an estimated 6,600 foot lateral.

In Dimmit County, Texas, Crimson has received the drilling rig and is preparing to spud the Beeler #2H well (50.0% WI) targeting the Buda formation. The Beeler #2H will be drilled to an approximate total measured depth of 11,180 feet, including an approximate 4,000 foot lateral, with initial production rates expected in May. This test represents Crimson’s first well targeting the Buda formation.

Allan D. Keel, President and Chief Executive Officer, commented, “The initial success of the Nevill-Mosley further validates the quality of assets Crimson holds in the Woodbine formation. Since drilling our initial well in March 2012, the Mosley #1H, Crimson has reduced completed well costs by approximately 34% equating to significant additional net present value to the Company. We plan to drill at least five additional wells in the Force area in 2013 and expect to achieve continued cost and operational efficiencies. We are also excited to begin our Buda program in South Texas, which combined with continued success in Madison and Grimes counties, will lead to an increase in shareholder value.”

Crimson Exploration is a Houston, TX-based independent energy company engaged in the exploitation, exploration, development and acquisition of crude oil and natural gas, primarily in the onshore Gulf Coast regions of the United States. The Company currently owns approximately 95,000 net acres onshore in Texas, Louisiana, Colorado and Mississippi, including approximately 19,000 …read more
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