Clayton Williams Energy Inc., Midland, Texas, (Nasdaq: CWEI) reports it is abandoning the Claudia’s Education Trust 33-1 exploratory well on its Winnsboro prospect in Richland Parish, Louisiana.

This well was drilled to a depth of 17,000 feet, sufficient to test the expanded Bossier formation, but the targeted reservoir rock was not present in this area. Clayton Williams will record provisions for dry-hole costs and impairment expense totaling approximately $20 million in the fourth quarter related to the abandonment of this well and the impairment of approximately 73,000 net acres in the Winnsboro prospect.

The company is continuing drilling operations on the Sunny Unit #1, a 20,000-foot exploratory well in Burleson County, Texas, targeting the deep Bossier formation. The well is being drilled on a 3-D-defined prospect that is on trend to and 20 miles southwest of the company’s Lee Fazzino #2 well, which has produced 34.6 billion cubic feet of gas since first production in 2001.

Sunny Unit #1 been drilled to a total vertical depth of 15,600 feet, and Clayton Williams plans to complete drilling operations late in the first quarter. The company has incurred drilling costs of approximately $11.6 million on this well (100% working interest).

Clayton Williams has oil and gas properties primarily in Texas, Louisiana and New Mexico.