By OGJ editors
HOUSTON, Dec. 17 -- Exploration Co., San Antonio, said it retained financial consultants to pursue alternatives for the company that include merger or sale.
The company released its 2005 capital budget, but Pres. and CEO James Sigmon said, "Longer term, we want to assure our shareholders that we consider all of the strategic alternatives available to us." Raymond James & Associates Inc. is to examine alternatives.
The $29-33 million budget is for 64 new wells and 3 reentries on the company's 554,000 acres in the Maverick basin of Southwest Texas.
The budget includes $18.8 million for 43 proposed Georgetown gas and oil wells, $5.3 million for 14 Glen Rose wells, $2.9 million for 10 new vertical wells in the Pena Creek field San Miguel waterflood, and funds for a seismic survey on the Burr and Quemado leases (see map, OGJ, Oct. 4, 2004, p. 30).
The basin received double its average annual rain in 2004, but the company maintained its second highest operating level through early December at 60 wells spudded and nine wells reentered. Net production was 1,169 b/d of oil and 10.6 MMcfd of gas on Nov. 30 in spite of partial curtailment.
