Goliad

Powder River Basin Gas Corp. said it completed the first well of a 25-well drilling program on the Biamante project on the Powder River Consolidated Field in Goliad County, TX. The Biamante #1 is now completed and has been put into production. Production for the first 24 hours was set at 380 Mcf/d of natural gas. However, this rate will be monitored over the next several days to determine a stable flow rate. The 25-well program is scheduled for completion to full production in 2009. Production estimates based on recent engineering reports predict an average of 200 Mcf/d of gas as a conservative target. “This is another exciting program for Powder River Basin Gas Corp., particularly in that it is located in an area we are already familiar and have had success with,” said Powder River CEO Brian Fox. Calgary-based Powder River is active in production, acquisition and marketing of crude oil and natural gas properties. The company’s primary interests are in Wyoming, Oklahoma, Louisiana and Texas.

Houston-based Carrizo Oil & Gas Inc. has drilled its Riverdale #2 well in the Cabeza Creek Project area in Goliad County, TX, which tested at an unstimulated gross rate of 7,524 Mcf /d and 146 bbl/d, or 8,400 Mcfe/d, on a 18/64-inch choke with flowing tubing pressure of about 4,050 pounds per square inch. The test was done in a Wilcox zone with 36 feet of net pay. Carrizo is operator and owns a 68.75% working interest. It currently is working on a pipeline hookup and expects the well to begin production in the next two weeks. Three additional wells are expected to be necessary to fully develop the Riverdale project, the company said. Other partners include Palace Exploration, which owns a 30% working interest.