Exploration Co. approves most ambitious drilling program in its history for 2007

The board of San Antonio-based Exploration Co. has approved the company’s most ambitious drilling program ever, with plans to spend as much as $75 million to drill as many as 103 wells in 2007, company officials said Wednesday.

Drilling 103 wells would represent a 70 percent increase over 2006′s target of 60 wells. But Exploration Co. officials noted that the capital budget plan may be revised based on plans by its partners and the availability of drilling rigs and drilling results.

The company said it would pay for its capital expenditure program from internal cash flow and existing bank credit.

The Exploration Co., which has leased acreage primarily in two areas of West Texas, said the bulk of its 2007 drilling — about $39.3 million — will concentrate on the Glen Rose formation on its Maverick Basin acreage. It plans to drill 39 wells there.

So far this year, the company has begun 57 Texas wells, with 39 now in production.

“We are truly excited about the company’s potential as we ready for another record year of drilling in 2007,” CEO Jim Sigmon said in a statement. The expanded drilling, coupled with the company’s strong balance sheet, high oil prices and good cash flow will mean accelerating growth in 2007, he said.