CoreStream Energy, Inc. Announces Successful First Drilling Effort Preparing to Drill Second Well on 1,600 Acres of Prime Oil and Gas Exploration Land
IRVING, TX--(Marketwire - January 7, 2011) - CoreStream Energy, Inc. (PINKSHEETS: ZLUS) today announced the successful drilling of the State Lease #2 well in the Catahoula Lake area in LaSalle Parish, LA, an area of significant proven reserves that has seen considerable success in the past. CoreStream Energy, Inc. maintains a non-operated working interest in this well. The well was spudded on December 28 and drilled in the Wilcox Sand formation at a total measured depth of approximately 4,695 feet with a directional drilling angle of 13?? beginning at approximately 3000 feet. Once the well is completed, it is expected to be productive, although a projected production rate is not known at this time. Both the well logs and core samples indicate strong oil potential in two different pay zones. Natural gas production is not expected to be significant. All investors who participated in the exploration phase of the well are expected to participate in the completion phase as well. Due to these ongoing completion activities, the final calculation of CoreStream Energy, Inc.'s net working interest percentage has not been finalized. The well is in the process of completion and is expected to begin production by the end of January. This well is CoreStream's first of many planned investments in this established and steady production area. CoreStream Energy plans to continue to pursue a strategy of investing in intermediate depth drilling in low risk fields both on an operated and non-operated basis.
This well is located on a leased parcel of 1600 acres of prime oil and gas exploration land. Based on this week's successful effort, CoreStream is moving immediately to begin the process of exploring the next best geological opportunity within this leasehold. Chris Rainbolt, CoreStream's CEO, is extremely pleased with this effort and commented, "The interpretation of the core analysis of the State Lease #2 well provides a very strong indication of the consistency of productivity inherent in so many of the existing wells in the Catahoula Lake area, and we believe this success demonstrates that our investment strategies are on target. I wish to thank all those who gave around-the-clock effort during the holidays to help us deliver this initial major success for CoreStream and its shareholders. Because we were able to commit to this project before the end of 2010, this effort will bring new opportunities to CoreStream that would not have been made available had we not moved so quickly on this opportunity. We are extremely pleased to have successfully obtained rights to such properties in this very productive area at a time when oil demand only appears to be increasing worldwide."
FUT Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
