Grand Gulf Energy advises that the Desiree Prospect, Hensarling #1 well, is drilling ahead at 11,933ft. The first objective, Cris R II sand, was intersected overnight and the mud logs indicate oil shows over 60-70ft of gross interval. The second objective, Cris R III sand, is expected to be reached within a day, following which electric logs will be run.

Should the electric logs indicate 'pay' then casing will be set over the Cris R II & III prior to drilling ahead to the secondary objectives, the Cris R IV & V.

The Desiree Prospect covers an area of 140 acres in Assumption Parish, Louisiana and is being operated by a private US oil and gas company. The operator is the same partner that is managing the Napoleonville Salt Dome project.

This well will be drilled to a total depth of 12,550ft. The Company's net share of dry hole costs is estimated at ~US$1.1m (total drilling costs are US$3.6m). The Primary objectives are the Cris R II and III which have the potential for 600,000 - 800,000 bbls of oil and secondary objectives in the Cris R IV and V (200,000 bbls oil and 15-30 BCF gas).

Tags: Grand Gulf Energy