| Drillmar reports positive well logs from the Hastings Lopez #2 well |
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| Houston, Texas - May 22, 2008 Drillmar Oil & Gas, Inc announced that the Hasting Lopez #2 well in Starr County, Texas reached a total depth of approximately 4,900 feet on May 19th, 2008. The well was targeting three sands (Crocket, Cook Mountain and Queen City) and all three appear productive from electric logs. The well is currently awaiting flow test and completion. Drillmar has an approximately 45 percent working interest and operates the well. The well is the second well drilled in the field after the initial field discovery well was successfully tested last month. Drillmar obtained the ownership through a court order whereby the original operator’s ownership was conveyed to Drillmar. Drillmar’s interest is subject to an approximately net 25% production payment to the creditors until recovery of the M&M liens (approximately $2.5 mill). This is the fifth consecutive successful well drilled with the Company’s LOC 250 Casing Drilling Rig “Vitesse” since the rig was delivered 4Q 2007. The rig will continue to be deployed in Starr County and drill additional development wells.
Furthermore, the Company will be testing the Wadsworth # 1 well in
Matagorda County, Texas and the 8,800 sand in the exploratory T Bourque
well in Iberville Parish, Louisiana over the next few days. Drillmar Energy Inc is an oil and gas exploitation and production company. In the US, Drillmar Energy Inc is operating through its wholly owned subsidary Drillmar Oil & Gas Inc. Drillmar's strategy is to exploit the use of non-traditional drilling techniques and technologies. These techniques and technologies include casing drilling, managed pressure drilling and certain petrophysical/geophysical reprocessing and remapping. We have consistently made significant improvements in the efficiency and cost of developing oil and gas reserves for BP, Shell, PDVSA, PEMEX and Apache as well for our own account. We are currently qualified operator in Texas and Louisiana and have established appealing production and/or acreage positions in those states. Forward-Looking Statement. This news release may contain certain forward-looking statements including declarations regarding Drillmar Energy Group and its subsidiaries' expectations, intentions, strategies and beliefs regarding the future. All statements contained herein are based upon information available to Company management as of the date hereof, and actual results may vary based upon future events, both within and without the control of management, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that acquisitions may have on the company and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditure requirements, competition, governmental regulations and other factors. |
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