TransAmerican Energy reports drilling Rogers Estate 10-4 #1 well
May 16, 2006 - TransAmerican Energy Inc. (TSX-V Symbol: TAE) (“TransAmerican” or the “Company”) is pleased to announce that operations have commenced on the reentry of the Rogers Estate 10-4 No. 1 well in Morton Field, Scott County, Mississippi.
We have drilled through the first cement plug at approximately 500 ft and have progressed rapidly to 1000 ft subsurface. Upon drilling through a cement plug, the well flowed some oil and gas, which might indicate that the cast iron bridge plug expected to be at 14,300 ft may not have provided a seal over the old perforations at 14,312-34 ft. Currently, the rig is merely dropping one 30 ft joint after another into the hole.
It was expected that we will have to drill out a cast iron bridge plug at 14,300 ft, then burn over a packer at 14,339 ft in order to reach the objective perforations at 14,342-48 ft.
As stated in the August 10, 2005 Fletcher Lewis Engineering Inc. Reserve and Economic Evaluation of the Morton Field, prepared for TransAmerican Energy and filed with SEDAR in August, 2005, this area is estimated to hold oil reserves of 74,158 bbls. Fletcher Lewis Engineering Inc. is a qualified reserves evaluator in accordance with National Instrument 51-101 (NI 51-101) and the standards set out in the Canadian Oil and Gas Evaluation Handbook.
“We’re looking forward to increasing cash flow with the successful reentry of this well,” said Company President Ron Hughes. “We are confident in the technical report that there are reasonable reserves in the Morton Field to exploit, and are pleased that the drilling operations are being skillfully executed by our Operators”.
Third quarter financial results posted April 3, 2006, show that revenue from producing properties has been steadily increasing, and the Company continues to seek and develop potential revenue producing properties utilizing the cash flow from production.
Please visit the Company’s updated website at www.TransAmericanEnergy.com.
TransAmerican Energy Inc.
Ron Hughes, President
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