Clayton Williams Energy, Inc. (NASDAQ–NMS:CWEI) today
provided an update on its recently-announced developmental drilling
programs. The Company reported in June its plans to begin two major
drilling projects during the last half of 2009 in the Permian Basin and
Austin Chalk, two of its core oil-producing areas, utilizing drilling
rigs owned by its wholly-owned subsidiary, Desta Drilling, LP.
Currently, the Company is employing two of its rigs in Andrews County,
Texas to drill developmental wells targeting the Wolfcamp/Spraberry
formations in the Permian Basin. A third rig is expected to begin
drilling in Andrews County during the fourth quarter of this year. The
Company also has one drilling rig employed in Robertson County, Texas to
drill in-fill horizontal wells to the Austin Chalk formation, and plans
to add a second rig in this area before year-end.
Clayton W. Williams, Jr., President said, “We are extremely pleased with
the performance of our drilling rigs. We have been able to hire
experienced crews and managers, and they are doing a good job for us.”
The Company also updated its estimates for capital spending for the
remainder of the year. The Company now plans to spend approximately
$113.8 million on exploration and development activities, as compared to
the June 2009 estimate of approximately $107.7 million. The table below
provides an overview of the estimated capital spending by area:
|
|
Total
|
|
|
|
|
Planned
|
|
|
|
|
Expenditures
|
|
|
|
|
Year Ending
|
|
Percentage
|
|
|
December 31, 2009
|
|
of Total
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
Permian Basin
|
$
|
44,000
|
|
39
|
%
|
|
South Louisiana
|
|
24,400
|
|
21
|
%
|
|
East Texas Bossier
|
|
18,700
|
|
16
|
%
|
|
Austin Chalk (Trend)
|
|
14,800
|
|
13
|
%
|
|
Utah/California
|
|
6,700
|
|
6
|
%
|
|
North Louisiana
|
|
4,600
|
|
4
|
%
|
|
Other
|
|
600
|
|
1
|
%
|
|
|
$
|
113,800
|
|
100
|
%
|
This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than
statements of historical or current facts, that address activities,
events, outcomes and other matters that we plan, expect, intend, assume,
believe, budget, predict, forecast, project, estimate or anticipate (and
other similar expressions) will, should or may occur in the future are
forward-looking statements. These forward-looking statements are
based on management’s current belief, based on currently available
information, as to the outcome and timing of future events. The
Company cautions that its future natural gas and liquids production,
revenues, cash flows, liquidity, plans for future operations, expenses,
outlook for oil and natural gas prices, timing of capital expenditures
and other forward-looking statements are subject to all of the risks and
uncertainties, many of which are beyond our control, incident to the
exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price volatility,
domestic and worldwide economic conditions, the availability of capital
on economic terms to fund our capital expenditures and acquisitions, our
level of indebtedness, the impact of the current economic recession on
our business operations, financial condition and ability to raise
capital, declines in the value of our oil and gas properties resulting
in a decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the uncertainty
inherent in estimating proved oil and gas reserves and in projecting
future rates of production and timing of development expenditures,
drilling and other operating risks, lack of availability of goods and
services, regulatory and environmental risks associated with drilling
and production activities, the adverse effects of changes in applicable
tax, environmental and other regulatory legislation, and other risks and
uncertainties are described in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
Clayton Williams Energy, Inc.
Patti Hollums, 432-688-3419
Director
of Investor Relations
cwei@claytonwilliams.com
www.claytonwilliams.com
or
Mel
G. Riggs, 432-688-3431
Chief Financial Officer