Cheetah O&G announced Belmont Lake, Mississippi project update.
As of March 22nd, the 12, 12-3 and 12-4 wells have been tied in and producing by natural gas pump lift technology. Gross production from the three producing wells at Belmont Lake is currently averaging 130 barrels per day of light oil.
Our operator has reported the 12-5 well is awaiting specific control parts and will be tied in as soon as possible. The 12-5 well was production tested for a 36 hour period and produced 90 barrels of light oil.
Work has also been completed on the SWDW (Salt Water Disposal Well) that will handle any salt water produced by the currently producing oil wells at Belmont Lake. Currently a Free Water Knock Out for the test system and the production system is being purchased and installed. This system will remove free water from the wells before it reaches the heater treater so that heat is not wasted on the waste water thus further improving the good economics at Belmont Lake.
Planning is now underway for up to an additional four development wells at Belmont Lake in 2011.
Planning will also focus for the first time on our large exploration package which we already have 38 seismically defined drill locations. Our geological staff along with our partner's staff will be refining the target selection to those targets that appear to have the highest probability of making another frio light oil discovery. "With crude oil around $100 per barrel a frio oil discovery in which we have a 40% gross interest going forward should have a major positive impact for all stakeholders of Cheetah," stated CEO Robert McAllister.
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