A 1982 Wilcox oil discovery in southeast Louisiana constituted one of the more significant onshore U.S. discoveries for the year and illuminated a new oil trend. Prior to this discovery, Lockhart Crossing Field was known for its gas/condensate production from Cretaceous Lower Tuscaloosa sandstones at depths of 17,000-18,000 ft. Oil production from sandstones of the Lower Eocene uppermost Wilcox Group was recently established at 10,000 ft. with the successful completion of the Callon No. 1 Reed Erickson (630 BOPD). To date, 30 producers and 6 dry holes have been drilled in the field, with production peaking at 10,000 BOPD and recoverable reserves of 15-20 MMBO after secondary recovery.

The new "Down-Dip" Wilcox trend lies south of the well known fluvial/deltaic Wilcox sequences which have been explored and produced for years. In contrast, this new trend consists primarily of shallow marine, nearshore, bar sands with impressive lateral continuity.

The main field reservoir is a 40-80 ft. sandstone with two distinct facies present. The dominant of these two facies is an upward coarsening sequence of very fine to fine-grained glauconitic sand deposited as a nearshore bar. The second is a channelized facies with an upward fining sequence of medium to very fine-grained sand. This facies was deposited subsequent to bar deposition as a product of channeling and erosion into existing sediments triggered by fault movement. The primary trapping mechanism, however, is structural in the form of a rollover anticline.

In April of 1983, Callon and Amoco extended the trend to the southeast with the discovery of Livingston Field. With continued exploration, chances are good that this new trend will yield additional discoveries.

End_of_Record - Last_Page 4---------------