Mississippi

Feb. 16, 2006
The US unit of Daytona Energy Corp., Calgary, let a contract to Shamrock Drilling Inc., Natchez, Miss., to drill a well to Cretaceous Selma chalk in Jasper County.

By OGJ editors

HOUSTON, Feb. 16 -- The US unit of Daytona Energy Corp., Calgary, let a contract to Shamrock Drilling Inc., Natchez, Miss., to drill a well to Cretaceous Selma chalk in Jasper County.

The Melvin-1 well, on a 720-acre lease, is to offset two old wells. One produced gas from Selma chalk for a brief time in 1959, and the other tested at 1.25 MMcfd and 24 b/d of condensate from Selma in 1962 and was never produced.

Daytona Energy USA LLC is operator with 80% working interest and expects to reduce its interest to 50% before spud.

Selma chalk produces in Sharon, East and West Heidelberg, Gwinville, and other fields.

Denbury Resources Inc., Plano, Tex., has 11 wells averaging a combined 2.5 MMcfd in Sharon field, where Selma is being drilled on 20-acre spacing, Daytona said. Selma at 3,700 ft produces 15 MMcfd from 100 wells at Heidelberg.