The Exploration Company (Nasdaq:TXCO - News) today announced a record capital expenditure plan and drilling program for 2007. It also provided an update on its current Texas drilling activity.

CAPEX

TXCO’s board of directors has approved an initial 2007 capital budget in a range of $70 million to $75 million - the Company’s largest ever, targeting 103 gross wells and a 70 percent increase over the revised 2006 target of 60-plus wells. The Company expects to fund its CAPEX program from internal cash flow and an existing bank credit facility.

The capital budget may be revised, based on drilling plan changes by partners, rig availability, drilling results, operational developments, unanticipated transaction opportunities, market conditions or commodity price fluctuations.

The Maverick Basin’s prolific Glen Rose Porosity oil play (73-100 percent working interest) will continue to receive the largest share of the CAPEX budget, $39.3 million for 39 wells, including five re-entries. TXCO’s emerging San Miguel oil sands play (50% WI) will receive $9.1 million for 32 wells. The budget calls for three wells to the gas-prone Pearsall formation (50% WI), budgeted at $4.8 million. The budget allocates $4.9 million for seven wells targeting the Georgetown formation (63-100% WI) and $5.8 million for 10 wells to the Glen Rose reefs and shoals. The Company will continue development of its Pena Creek San Miguel waterflood (100% WI) with $3.5 million set aside for 11 wells.

In the Marfa Basin (50% WI), which is prospective for the Barnett and Woodford shales, the Company has allocated approximately $3.0 million for one new well and a three-dimensional seismic acquisition program. Other items in the budget, including leasing and infrastructure projects, are earmarked for $2.0 million.

complete to read this news click here

Find More Other News : Company, Exploration, Mine Trade & Market, Mining Top News, Oil & Gas