Clayton Williams Energy, Inc. provides an update on its Eagle Ford Shale drilling activities. The Company has drilled and completed the Smalley-Robinson Unit #1 in Burleson County, Texas, the second horizontal well drilled by the Company to test the Eagle Ford Shale formation which underlies most of the Company's extensive holdings in the Austin Chalk field in East Texas. The well was drilled to total vertical depth of 7,020 feet with a 5,500 foot lateral and was completed with a 13 stage frac. The well initially flowed at a rate of 492 barrels of oil per day, and the most recent production rate is 175 barrels of oil per day. The Company owns 100% working interest in the well and expects to incur approximately $3.3 million in drilling and completion costs.

As previously reported, the Company completed its first Eagle Ford Shale well, the Broesche Unit #1 in Burleson County, in February 2010. This well, which is 11½ miles from the Smalley-Robinson, was drilled to a total vertical depth of 7,580 feet with a 4,880 foot lateral and was completed with a 9 stage frac. The well initially flowed at a rate of 234 barrels of oil per day and is currently on pump at a production rate of 46 barrels of oil per day. The Company owns 100% working interest in the well and has incurred approximately $3.1 million in drilling and completion costs.

The Company is continuing to evaluate the data from both wells and will drill a third well to evaluate acreage in the western portion of this block. The Company may drill additional wells in order to determine if an Eagle Ford Shale drilling program is economically viable.

Clayton W. Williams, Jr., President said,'We had a substantially improved frac on the second well, and believe that the formations in both areas look similar. We will continue to evaluate these wells for economic viability.'

Tags: Clayton Williams Energy Inc.