(US, GoM) - Gulfsands says it participated at a 12.5% working interest in an exploration well on Eugene Island block 58.
The well was drilled to a total measured depth of 11,655 ft and the wireline logs indicated the presence of hydrocarbons within several zones with approximately 170 ft of potential net pay. The well tested natural gas at a rate of 8.2 MMcf/d and 134 b/d of condensate.
Production casing has been set and completion operations have started. First production from the well is expected in late March 2006. The net cost to Gulfsands for the drilling, completion and facility costs to hook up this well is estimated to be approximately $986,000.