Completion of Offshore Wells

Wednesday, August 25, 1999
The Houston Exploration Company announced the completion of offshore wells that should provide additional production beginning in the second quarter of 1999. Because of drilling activity during the first quarter, the company shut-in certain production from its Mustang Island A-31/A-32 region. Due to this shut-in and other factors, the Company expects first quarter 1999 production levels will average approximately five percent higher than the prior quarter's level. In the company's three-lease complex in the Mustang Island region on the shelf of the Gulf of Mexico, the Company successfully drilled its first well since acquiring the property in the fourth quarter of 1998. The Mustang Island A-32 B-8 well, a development well, was drilled to a total depth of 9,900 ft. and encountered more than 100 ft. of net pay in six sands. The well began production on April 14, 1999, and is expected to produce eight to ten mmcfe per day, net to the company. The company holds 100 percent working interest in the well. The Company also announced the successful recompletion of the lower horizon of the High Island 38 No. 1 well. Following a gravel pack failure in mid-1998, Houston Exploration assumed operations of the well and restored production in the lower horizon, with an initial flow rate of 9.6 mmcfe per day, which is expected to increase to 12 mmcfe per day, net to the company. Houston Exploration holds a 100 percent working interest in this horizon of the well.

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