Unicorp Announces Its Largest Texas Discovery to Date on Its Catfish Creek Prospect
Wednesday October 31, 4:05 pm ET
HOUSTON--(BUSINESS WIRE)--Unicorp, Inc. (OTCBB:UCPI - News) announced today that its Catfish Creek Well No. 1, located in Henderson County, Texas, flow tested 87 barrels of oil and 266 thousand cubic feet (Mcf) of gas per day. Production is from the Rodessa Bacon Lime formation which is located between 9651 to 9658 feet deep. The Catfish Creek prospect consists of over 8,000 gross acres in which the Company along with its partners has mineral rights to a depth of 10,600 feet, and the option to participate in wells below 10,600 feet. This option is important because it will allow the Company to test both the deeper Cotton Valley and Bossier formations which are present throughout the acreage at depths below 10,600 feet. These formations are prolific hydrocarbon producers in other fields in the region. The Company is excited about the potential these formations hold and currently plans to drill a second well in the 4th quarter of 2007 to develop the Rodessa Bacon Lime discovery and possibly a deep test to the Cotton Valley formation in early 2008. The Company has a 33% before payout and 25% after payout working interest in each well drilled and an approximate 24.8% before payout and 18.75% after payout net revenue interest in each producing well.
Management Comments
Bob Munn, President and CEO of Unicorp said: “The significance of this discovery to Unicorp is the potential for 20 to 40 additional wells in the Rodessa Bacon Lime formation on this prospect. The success of the Catfish Creek No. 1 well allows us to add four proved undeveloped locations which will significantly increase our year-end reserve estimates when compared to those for the year ended December 31, 2006. Our immediate plans are to drill a second well before year end to further delineate the reservoir and identify additional drilling locations.” Mr. Munn went on to say: “We are equally excited about testing the deeper Cotton Valley and Bossier formations as soon as possible. This play has significant reserve potential in excess of 50 Bcfe. These are, however, deeper and more expensive wells hence we will proceed only after thorough planning and evaluation.”
In other news, Unicorp announced it had sold its participating interest in the Clemens Dome prospect, located in Brazoria County, Texas. Mr. Munn is quoted as saying: “Based upon our discovery at Catfish Creek, we felt it important to reallocate our drilling budget from the potential one well prospect at Clemens Dome to a potential multiple well field at Catfish Creek.” Unicorp received its original investment of approximately $750,000 from the sale.
