Perth, June 11, 2008 (ABN Newswire) - Exoma Energy Ltd (ASX:EXE) has announced the commencement of its Anadarko Basin horizontal drilling campaign. Its first well, Brearley 1H-11, (EXE 25.8%) spudded over the weekend. It is targeting 1.5 billion cubic feet (BCF) and 50,000 barrels of oil (bbl) with similar wells in the area commencing production at average rates of 200 bbl per day and 800,000 cubic feet of gas per day.

Exoma is free carried for the costs of Brearley 1H-11, with drilling expenses being paid by Crusader Energy which has farmed into Sections 2, 10 and 11 of Exoma’s Ellis County acreage.

Exoma is continuing the development of its Anadarko Basin production assets, where its first well since listing, Kelln 94-2, has been producing oil and gas well above pre-drill estimates.

“Crusader is specifically targeting the Cleveland Formation, under the terms of our farm in agreement,” said Managing Director David Rowbottam. “We know the Des Moines Formation is also productive in that section, so this initial horizontal well is just starting to test the significant potential of our multi-formation horizontal drilling programme.”

“Brearley 1H-11 was originally planned for July however Crusader brought the well forward. Crusader has a success rate greater than 90% for Cleveland Formation wells in the Anadarko Basin, so we have every confidence in our partners. Crusader is expected to obtain drilling approvals for up to three horizontal wells in the same formation within a single 640 acre drilling section.

“Provided the Brearley 1H-11 well achieves target, another five to eight wells could be drilled across the three adjoining sections. Assuming a success rate already achieved by Crusader, each well would significantly add to Exoma’s daily production rate and monthly revenue.”

Three further horizontal wells in 2008

“Under the terms of the Crusader farm in, we plan on drilling a horizontal well every four months. This will mean another Crusader well in November and two further horizontal wells in September and December with our other partner company, Canyon Exploration.”

Deal 1-11 re-entry (EXE 99.42%): Exoma has identified previously logged but undeveloped zones in the Morrow Sands in the shut-in Deal 1-11 well. It is planning to farm out to fund a re-entry, test and frac of the Atoka, Morrow B and Morrow C sands in the third quarter of this year.

Knowles 1-3 re-entry (EXE 12.5%): Following the Kelln 94-2 drilling successes and a greater understanding of the trend of the Atoka Formation, Exoma is planning to re-enter and test a logged Atoka payzone in September.

Kelln 94-3 / Kelln Trust 5-2: a follow up to the successful Kelln 94-2 well is planned for October, pending the approval of joint venture partners and regulatory authorities.

Texas Exploration Wells: The Glory Road-2 and Goliath exploration wells are planned for October and November respectively. Joint Venture negotiations are continuing in relation to the location and budget of the Glory Road-2 well. The Operator of the Goliath Prospect continues to market the well to other potential investors to secure a drilling slot. 

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Well              Month      Activity
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Development Wells 
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Section 11,       July       Brearley 1H-11 
Anadarko Basin               Horizontal Develop well  
(25.87% WI)                  1.5B & 50MBO
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Section 11        August     Deal 1-11           
Anadarko Basin               Re-entry Vertical Well 
(75% WI)                     0.5B & 20MBO
-----------------------------------------------------
 
Section 9,        September  Horizontal Develop well 
Anadarko Basin               1.5B & 50MBO 
(25% WI)          
-----------------------------------------------------
Section 3,        September  Knowles 1-3  
Anadarko Basin               Re-entry Vertical Well 
(TBA WI)                     0.5B & 20MBO
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Sections 94 or 5, October    K94-3 / KT 5-2  
Anadarko Basin               Vertical Develop Well 
(18 to 30% WI)               0.75B & 50MBO
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Section 2,        November   Horizontal Develop well 
Anadarko Basin               1.5B & 50MBO 
(25.8% WI)        
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Section 16,       December   Horizontal Develop well
Anadarko Basin               1.5B & 50MBO 
(25% WI)           
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Exploration 
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Glory Road-2      October    12.7BCF & 634MBO
(33% WI)          
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Goliath           November   35BCF - >130BCF
(12.5% WI) 
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