Covington, LA – May 7, 2007 – LLOG Exploration Company, L.L.C., today announced several new discoveries from their 2007 drilling program. LLOG also achieved first production from a significant late 2006 discovery.
The Wylie Corporation #1 (Orange Grove Prospect) in Terrebonne Parish Louisiana, penetrated over 110 feet of gross hydrocarbon pay. The excellent quality reservoir was tested at 14.6 mmcfgpd and 878 bopd. Production is planned for June of this year. LLOG’s working interest in the field is 69.5%.
Other discoveries made in the first quarter of 2007 include South Timbalier 187 #2 (LLOG – 100%), West Delta 68 #1 (LLOG – 50%), and Vermilion 344 #2 (LLOG – 45%). Production from these discoveries is planned in the second half of 2007.
First production from the 2006 discovery at State Lease 18949 #1 (located in West Cameron Block 31) was achieved on April 29, 2007. The well flowed at a rate of 10.5 mmcfgpd and 200 bcpd. LLOG plans to increase this flow rate to over 20 mmcfgpd plus 380 bcpd. An additional field development well is planned for later this year. LLOG’s working interest in the field is 46.25%.
LLOG currently has 4 rigs operating; 2 rigs in South Louisiana, 1 on the Gulf of Mexico Shelf and Diamond Offshore’s Ocean Saratoga in the Gulf of Mexico Deepwater. Plans include contracting an additional 1– 2 rigs on the Shelf and securing slots on Deepwater rigs as they become available. LLOG is actively marketing its Deepwater prospect inventory to companies with rigs capable of drilling in the 3,000 to 5,000 foot water depth range.
LLOG also plans to offer multiple divestment packages in 2007. These packages will consist of South Louisiana, Shelf, and Deepwater producing properties. LLOG’s current production is over 150 mmcfepd (net to LLOG).
Scott Gutterman, President and CEO, commented “We slowed our activity considerably in 2006 due to high service costs. As rig rates on the Shelf have moderated, we are ramping up our activity. We are pleased with the results so far and look forward to an exciting 2007.”
About the Company
LLOG Exploration Company, L.L.C., is a privately owned and operated oil and gas firm with offices in Metairie and Lafayette, Louisiana, Houston, Texas, and the corporate headquarters in Covington, Louisiana.
