The Houston Exploration Co. announced Wednesday its first shallow-water deep-shelf discovery at High Island, off the Texas coast near Galveston, which is testing at 20 MMcf/d.

The #1 well at High Island 115 was drilled to 19,800 feet. Houston Exploration, which holds a 50% working interest in the project, anticipates its first production by the fourth quarter, pending facility construction. The well is operated by El Paso Production Oil & Gas Co. as part of a joint venture agreement between the two companies.

“This high-risk well confirms our view for the potential of the deep shelf,” said William G. Hargett, Houston Exploration’s CEO. “The knowledge that we gained from drilling this well can be applied to other deep-shelf opportunities we have offshore in the Gulf of Mexico.”

Houston Exploration has 118 leases along the continental shelf of the Gulf of Mexico, and it has budgeted for five more deep-shelf wells in 2003. West Cameron 227, the next well on the inventory, should begin drilling in July, the company said.

Houston Exploration also has signed an agreement with Fairfield Industries to license offshore 3-D seismic data that will double its current 3-D resources. Included in the agreement is Fairfield’s newly released “Deep- Shelf Program” 3-D seismic data that will be used to develop a strategy for the play.

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