Chestnut Petroleum Begins Two-Well Drilling Project in Calcasieu Parish, Louisiana

DALLAS, Jan. 3, 2011 /PRNewswire/ -- As part of a long-term field development strategy, Chestnut Petroleum is beginning a two-well drilling project targeting the prolific Gillis–English Bayou production fairway of Calcasieu Parish, approximately 10 miles north of Lake Charles, Louisiana. The pad site for Moss Bluff #1 is currently under construction with drilling expected to commence in January 2011. Chestnut Petroleum has slated the Riceland Drilling Rig #23 to drill the Moss Bluff #1 location. Chestnut Petroleum anticipates that both wells will be online in second quarter 2011.

"We've had great success on our Gillis–English Bayou acreage, and we're looking forward to getting started on these two new wells," says Mark Plummer, Founder and President of Chestnut Petroleum. "It's a great way to kick off 2011."

Chestnut Petroleum currently owns 25 wells in the project's immediate area, which encompasses 735 acres under lease. The company's acreage is located in an area of the field that was discovered by Texaco and Sun Oil in 1961 and has produced 10 million barrels of oil and 136,000,000 MCF of natural gas to date. Chestnut Petroleum acquired the acreage in 1994.

For 20 years, Texaco and Sun Oil utilized a gas injection program and pumped 85,000,000 MCF of natural gas into the field in order to enhance oil recovery. The two drilling locations have been selected to target the areas of the field where the un-drained injection gas and the associated oil may be captured.  

According to Mark Plummer, "We are excited to go after undeveloped energy assets and, more importantly, to recover the hydrocarbons that Texaco and Sun pumped into the ground."

About Us

Chestnut Petroleum is a privately owned independent owner-operator that conducts drilling, recompletion and reentry, and general operations in proven producing oil and natural gas fields primarily in Texas and Louisiana. Led by founder and President, Mark A. Plummer, Chestnut Petroleum has followed a philosophy of buying smart, managing costs, and improving production since its inception in 1995. Chestnut Petroleum applies a no-nonsense approach to asset management that drives its ability to create value throughout all of its operations. The Company's current asset portfolio encompasses approximately 250 wells in the following fields: Gillis-English Bayou Unit (GEB), Calcasieu Parish, LA; East Texas Field, Gregg County, TX; Signal Hill East Unit, Long Beach, CA; Hardeman County, TX; Barnett Shale, Hood & Tarrant Counties, TX; Lea County, NM; and Eliasville Field, TX.

Chestnut Energy Partners is the exclusive broker-dealer for Chestnut Petroleum; and is a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA, formerly the NASD).

To learn more, visit the company's web site at http://www.chestnutpetroleum.com

SOURCE Chestnut Petroleum