Carr has acquired two deep Cotton Valley Limestone reef wells from Blue Star Oil and Gas and will be recompleting them using new completion techniques to improve the existing production. Industry partners will be sought this fall for the project.

A gas PUD project with an associated TCF class wildcat objective is being sold currently. The PUD reserve is a 60’ Glen Rose reef gas interval discovered in 1981 but not produced due to the high CO2 (9%) and slight H2S content of the gas. Processing and pipeline availability exist now to enable the commercial production of the gas. Carr once again will utilize horizontal drilling in a cutting edge application. The 60’ of pay could not be fracture treated due to the likelihood that the fracture would extend into the water leg of the reservoir. The planned completion will utilize dual horizontal laterals into the top of the reservoir. Reserves have been estimated at 26 BCF per well for the two well (4 laterals) which will be drilled into the pay. The probable pay in the project is the Austin Chalk which kicked gas and had to have pipe set through it in 1981. The deep gas Austin Chalk play has now confirmed the prospective nature of this structure and the reserve estimate for this interval is 90 BCFG. The deep wildcat objective is the Knowles Limestone that appears to have a 1000’ reef covering 1,500 acres over a deep seated basement high block. If gas filled the test well could discover 1- 1.5 TCFG.