Clayton Williams updates operations

Clayton Williams Energy, Inc. provided an update on its exploration and development activities by area.

The Company has drilled two wells targeting the deep Bossier sands in East Texas: the Big Bill Simpson #1, a 19,000-foot exploratory well in Leon County (70% working interest), and the Margarita #1, a 20,000-foot exploratory well in Robertson County (100% working interest).

The Big Bill Simpson #1 is currently producing approximately 500 gross (263 net) Mcf of gas per day, and the Margarita #1 is waiting on completion of pipeline facilities to begin production, but is expected to initially produce approximately 750 gross (563 net) Mcf of gas per day, based on well test data. The Big Bill Simpson encountered a thick section of lower and middle Bossier sands, but these sands had limited porosity. The Margarita well encountered only the upper Bossier sands. The Company plans to conduct a 3D seismic shoot over the Big Bill Simpson prospect in 2008 in an attempt to high grade possible locations for future drilling on this acreage.

Although the production from these wells is non-commercial, we remain optimistic about our Bossier acreage, said Clayton W. Williams, Jr., the Company’s President and Chief Executive Officer. Currently, we have 142,000 net acres under lease in the East Texas Bossier play, of which approximately 70,000 net acres are held by production. We also have approximately 170,000 net acres under lease in our Louisiana Bossier play.