Black Elk Energy Informs of Drilling Success in U.S. GoM

Black Elk Energy Offshore Operations, LLC an independent oil and gas company headquartered in Houston, announced has the successful completion of 3 wells to kick-off their 2013 drilling program in the Gulf of Mexico.

The 2013 drilling program will begin monetizing the companies “proved undeveloped reserve” inventory. The completion of these 3 wells marks the beginning of this multiple year strategic reserve conversion project.

The expected net production from these 3 wells is approximately 1,000 barrels of equivalent per day (“boepd”) and they are located at High Island A443, Ship Shoal 219 and Vermillion 76. In addition to the rate results, two of the three wells encountered additional pay zones that will lead to further development drilling and reserve growth beyond initial expectations.

“We are extremely excited to begin the 2013 PUD Conversion Program with a 3 for 3 record on well completion”, says John Hoffman, President and Chief Executive Officer of Black Elk Energy. “I am proud of our team of highly skilled professionals and look forward to continuing this trend through the remainder of this program. We look forward to expanding our business and bringing added success to our stockholders.”

Executing on their strategic diversification plan, Black Elk Energy also announced  they have entered into a long term strategic relationship with an undisclosed third party to pursue development of oil reserves in South Texas utilizing new technology that is expected to yield exceptional growth.

“We are excited to enter into this strategic partnership”, says Hoffman. “Joining forces and utilizing their new technology in South Texas will prove to be extremely beneficial in increasing our cash flow and creating additional shareholder value.”