Project History
2007
The Company acquired significant working interests (“WI”)
in a US federal oil and gas lease in the Gulf of Mexico. In
August 2007, Probe completed the acquisition of 47.0031% WI
and 35.2746% net revenue interest (“NRI”) in the
federal lease for High Island Block 115 containing approximately
5,760 acres.
The Company also acquired a 41.54486% WI and 30.91863% NRI in
an existing well, High Island 115 Well #B-1 ST (the “HI
115 Well #B-1 ST”). The acquisitions were funded through
private placements. Subsequently, the Company participated in
the sidetrack drilling of the HI 115 Well #B-1 ST2. The drilling
program was successful, and the HI 115 Well #B-1 ST2 began producing
in December 2007.
2008
The Company expanded its asset portfolio by acquiring certain
interests in six US federal oil and gas leases in the Gulf of
Mexico (the “Leases”) in July 2008 covering approximately
26,500 acres. The Company acquired 100% WI and approximately
69.5% NRI in the Leases. The Company is the operator for the
Leases. The acquisition was funded by private placements. The
Company’s drilling and development program on the Leases
includes drilling nine wells (including exploration and development
wells), completing all wells, and developing fields at an estimated
cost of US$169 million.
On August 25, 2008, the Company announced the discovery of commercial
reserves in multiple horizons in its East Cameron 36 Well #1
(the “EC 36 Well #1”). The EC 36 Well #1 was spud
on August 5, 2008 and was drilled under budget to a total depth
of 10,450 feet.
On October 30, 2008, the Company announced the discovery of
commercial reserves in its East Cameron 246 Well #2 (the “EC
246 Well #2”).
2009
On January 5, 2009, the Company announced the discovery of commercial
reserves in the South Timbalier 214 Well #A-6 ST1 (the “ST
214 Well #A-6 ST1”). The ST 214 Well #A-6 ST1 was drilled
to 15,825 feet measured depth and 14,751 feet true vertical
depth. The ST 214 Well #A-6 ST1 was drilled from a Probe-owned
production platform in the adjacent block which is connected
to the NYMEX premium market via a ready-for-service export pipeline.
The ST 214 Well #A-6 ST1 commenced production on January 30,
2009.
The Company announced on April 29, 2009 that it had entered
into a joint venture (JV) with Petrodome Energy, LLC and certain
other parties for the drilling of its East Cameron 37 Well #1
(the “EC 37 Well #1”). The Company retained a 52%
WI and a 36.4% NRI before project payout (BPPO) and a 41.6%
WI and a 30.784% NRI after project payout (APPO) in the project
area (EC 36, EC 37, and VR 20) and continues as operator of
the project area.
On May 8, 2009 the Company announced that it had commenced drilling
of its EC 37 Well #1 and further announced on June 2, 2009 the
discovery of commercial gas reserves. The EC 37 Well #1 was
drilled – from the same surface location as the EC 36
Well #1 – under budget to a total measured depth of 12,039
feet and true vertical depth of 10,972 feet. |
