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Perdido Perdido Sand Trend. We own a 50% non-operated working interest in the South Texas, Perdido Sand trend. The Perdido Sands are comprised of tight natural gas sands and are in isolated fault blocks that are stratigraphically trapped below the Upper Wilcox structures at approximately 8,000 to 9,500 feet. We plan to continue to coordinate with the operator to improve horizontal and vertical drilling techniques to lower cost and increase performance. For the year ended December 31, 2008, our average net daily production was 8.3 MMcfe/d from 37 producing wells (24 horizontal and 13 vertical). We participated in the drilling of seven gross wells in 2008, all of which were successful. We have identified approximately 60 potential drilling locations on our acreage. |
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