Bois d’Arc Energy Inc., which drills for oil and gas in the Gulf of Mexico.

Last month the company reported earnings fell 29 percent as operating expenses ballooned. Since then Boid d’Arc said it has completed three more unsuccessful oil well explorations.

Today, Scotia Waterous and Raymond James to evaluate and advise the Board of Directors regarding strategic alternatives.

The Board hope any an alternative for update drilling result. The company does not expect exploration of strategic alternatives.

This result reporting first quater 2007, Bois d’Arc has participated in three unsuccessful exploratory wells (two wells, net to its interest).

Bois d’Arc’s OCS-G 27166 #1 well at South Pelto block 7 to test the “Dog Bone” prospect was unsuccessful as was the OCS-G 23903 #1 well at Ship Shoal block 163. Bois d’Arc also participated in another operator’s deepwater exploratory prospect in the second quarter but has elected not to participate in the well’s completion. Bois d’Arc’s second quarter financial results will include exploration expense estimated at $18 million relating to the dry hole costs of these projects. Bois d’Arc has a rig on location to spud its ultra deep “Butch Cassidy” prospect and is completing its second “Doc Holiday” prospect well as a dual natural gas and condensate producer.

In addition to its drilling projects, the Company has also completed the construction of a platform for its discovery at Ship Shoal block 166, which recently started up production at 7.4 million cubic feet of natural gas equivalent (”Mmcfe”) per day. The Company expects production at Ship Shoal block 166 to increase to over 9.0 Mmcfe per day as the platform reaches its full rate. Production has also been restored at Main Pass block 21, which has been shut-in since Hurricane Katrina, and is currently producing in excess of 600 barrels of oil per day. Bois d’Arc has also completed the second producing well in the M-8 sand waterflood recovery project in the Ship Shoal 113 Unit which has increased production from this project to 1,100 barrels of oil per day.

copyright 2007 | paguntaka.org

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