Signature Exploration and Production receives permit approval from the Texas Railroad Commission
Signature Exploration and Production Corporation announced today that it has obtained a permit from the Texas Railroad Commission ("RRC") to begin drilling on the Koliba well located in Bloomington, Texas. The Company also announced that its application for surface casing depth exception has been approved.
"While our Koliba well experienced a temporary delay due to extraordinary rains along the Guadalupe River, the operators have indicated that upon a sufficient dry-out period, they plan to immediately move forward with installing the necessary equipment at the site," said Steven Weldon, Chairman and CEO of Signature Exploration and Production Corp. "The operator realistically believes this can occur in the next few weeks or so, pending favorable weather forecasts. The permit obtained by the RRC will ensure all compliance is in place to prevent any further delay on the property. We are looking forward to breaking ground on this historically productive well."
The Koliba Prospect is a 173-acre lease located in the highly productive North McFadden Field near Bloomington, Texas. The Company has identified 3 target zones at 5,880', 5,350', and 4,930', in the Frio Sands. The Koliba Prospect will be drilled 250 feet from an originally large producing well and is considered a low risk / high reward prospect due to its proximity to previous wells in the prolific Frio interval. Koliba Prospect's total value is estimated at $39,885,000 based on $81.00 Bbls of oil and $4.50 Mcf of gas.
03/11/2010