Chestnut Petroleum Completes Well Work Over Project in Calcasieu Parish

DALLAS, Sept. 27 /PRNewswire/ -- In a move to maintain production potential, Chestnut Petroleum has successfully completed a work over project on the Layne #21, an oil and natural gas well in Calcasieu Parish, Louisiana. The Layne #21 was initially completed in August 2006 with a flow rate of 57 barrels of oil per day and 1020 MCF of gas per day. Natural reservoir decline coupled with routine mechanical wear resulted in production dipping drastically at the beginning of the year prior to rework.

(Logo: http://photos.prnewswire.com/prnh/20100803/DA44972LOGO)

(Logo: http://www.newscom.com/cgi-bin/prnh/20100803/DA44972LOGO)

"Our initial due diligence on this well showed strong potential for long-term production.  I am extremely pleased with the performance of this well knowing that it has produced for 3-1/2 years and we are still producing from the first of 5 reservoirs we found by drilling this location," says Mark Plummer, President and Founder of Chestnut Petroleum and Chestnut Energy Partners. "We will continue to pursue cost-efficient maintenance measures to maximize production throughout our properties as identified by our geologic and technical staff."

The Layne #21 is just one of 8 producing wells that Chestnut Petroleum operates in the Gillis-English Bayou field in Calcasieu Parish, which sits at the westernmost edge of Louisiana, along the border with Texas and north of coastal Cameron Parish. The Layne #21 work over was part of a larger field maintenance project that began in February 2010. In addition to down hole maintenance on individual wells, the maintenance project included a routine overhaul on the field's compressor, review of the field's cathodic protection system, plans to upgrade the production battery and saltwater handling capabilities, and the installation of a new 540 HP Caterpillar compressor engine.

As of September 7th the Layne #21 is producing 38 barrels of oil and 700 MCF of natural gas per day.

About Us

Chestnut Petroleum is a privately owned independent owner-operator that conducts drilling, recompletion and reentry, and general operations in proven producing oil and natural gas fields primarily in Texas and Louisiana. Led by founder and President, Mark A. Plummer, Chestnut Petroleum has followed a philosophy of buying smart, managing costs, and improving production since its inception in 1994. Chestnut Petroleum applies a no-nonsense approach to asset management that drives its ability to create value throughout all of its operations. The Company's current asset portfolio encompasses approximately 250 wells in the following fields: Gillis English Bayou Unit (GEB), Calcasieu Parish, LA; East Texas Field, Gregg County, TX; Signal Hill East Unit, Long Beach, CA; Hardeman County, TX; Barnett Shale, Hood & Tarrant Counties, TX; Lea County, NM; and Eliasville Field, TX.

Chestnut Energy Partners is the exclusive broker-dealer for Chestnut Petroleum; and is a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA, formerly the NASD).

To learn more, visit the company's web site at http://www.chestnutpetroleum.com

SOURCE Chestnut Petroleum