Signature E&P says that a drilling contract has been signed and drilling permits have been submitted to begin drilling a 13,800 foot test well on the 1,043 net acre Frio Sand target leased in South Texas.

The target was identified through the acquisition of a 303 sq. mile 3D seismic database. Signature Exploration and Production currently owns a 10% working interest with an option of 10% on additional wells on the prospect.

"The Frio formation, a sandstone interval, is one of the most prolific producers in South Texas," said Steven Weldon, Chairman and CEO of Signature Exploration and Production Corp. "Given the size and multiple pay zones, we anticipate this to be a high producing well."

The Kenedy Prospect is located on 1,043 acres located in Kenedy County, Texas. This drill-ready prospect is a four way anticline with the potential of multiple pay Frio Sands. The Frio zones generally have higher permeability and porosity that lead to higher flow rates.

Tags: Signature Exploration and Production Corp.