FSNR >>> Freestone Resources, Inc. (FSNR.PK) Announces Successful Recompletion of Carroll Unit # 1
Business Wire - November 2, 2006 9:00 AM (EDT)
FAIRFIELD, Texas, Nov 02, 2006 (BUSINESS WIRE) -- Freestone Resources, Inc.(FSNR) is very pleased to announce the successful recompletion of the Carroll Unit # 1. This completion creates an income stream for Freestone Resources with additional acreage for drilling potential to launch the company. The Carroll Unit # 1 is located in the Cheneyboro Field in northern Freestone County, and was originally drilled to a depth of 14,235 feet. The well was drilled and completed by Clayton Williams Energy, Inc. in March of 1998. Freestone Resources acquired a net 80 % lease on the surrounding 482.26 acres, including the original well site this year, with intentions of re-entering this particular well. On August 31, 2006, the original plugged well was located and a new well-head was fabricated onto the existing surface casing.
A 'Basic Energy Solutions' work-over rig began drilling out the first cement plug on Friday, October 13. Over the course of the next several days all plugs were drilled out, the casing was tested, and a packer was set at 9201 feet. Following release of the work-over rig, the well began its flow-back period, in which the well is allowed, under its own gas pressure, to push out water or drilling fluids that were located down-hole. During this phase, the water, drilling fluids and oil are collected in a flow-back tank, and the natural gas is flared off. As of Tuesday, October 31, the well was producing an estimated 300 MCF/D of natural gas per day and 29 barrels of oil per day, at a pressure of 400 PSI on a 30/64 inch choke. These numbers are expected to increase as all remaining water and drilling fluids are brought to surface by the down-hole pressure of the well. Once this production evaluation is completed, the well will be temporarily shut-in to allow for the construction of a pipeline in order to begin selling the natural gas produced.
Freestone Resources is very pleased with the outcome of this recompletion and wishes to thank all involved parties for their diligent work. Freestone Resources will now begin the process of obtaining additional acreage contiguous to the Carroll Unit, in order to begin implementing a drilling strategy to exploit the surrounding natural gas reserves. Freestone Resources CEO Lloyd Lane stated "Along with the acreage contiguous to Carroll Unit, Freestone is currently negotiating more leases in Freestone County in which all have re-entry prospects. It is in our shareholders best interest to increase our production holding in more than one field."
Photos of the current recompletion process of the Carroll Unit #1 can be seen on our website at www.freestoneresourcesinc.com. Updated photos and technical data will be added in the following days, as they become available. Upon completion of the 72 hour production evaluation, a full disclosure of the Carroll Unit # 1 production statistics and economic projections will be released.
About Freestone Resources, Inc.:
Freestone Resources, Inc. is an East Texas based Oil and Gas company which is actively pursuing opportunities in Texas and New Mexico oil and gas fields in the areas of lease acquisitions, exploration, production, recompletions, and waste disposal. Freestone Resources, Inc. is also diligently working to develop and utilize emerging technologies and products related to increasing oil and gas production, efficiency and profitability.
SAFE HARBOR STATEMENTS:
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
SOURCE: Freestone Resources, Inc.
Freestone Resources, Inc.
Lloyd Lane, CEO, 903-389-8817
info@freestoneresourcesinc.com
Copyright Business Wire 2006
