Lexaria announced that for the first time, there are now up to four producing oil wells at the Belmont Lake oil field, and a salt-water disposal well that is connected and operational. The necessary work was completed despite challenging field conditions prior to the seasonal rise in Mississippi River water levels. Some residual infrastructure work will be completed during the next dry season.
The Belmont Lake oil field has now produced over 100,000 barrels of oil.
Lexaria has drilled both oil and gas wells in the region since 2005, concentrating on shallow geologic horizons that are less expensive to exploit than deeper targets. There are a number of geologic target zones from the shallowest all the way to the Tuscaloosa Marine Shale. A 1996 Louisiana State University study estimates that 7 Billion recoverable barrels of oil may exist in this oil shale that in some regions is 400-800 feet thick.
Lexaria holds an option to drill up to 38 exploration wells on roughly 130,000 acres of land in the region, in which it holds a 60% interest. Shallow fields are of primary interest to the Company, in part, because of the history of this region. Some of the shallow oil fields in the area produced by others include:
Lexaria currently holds a 40% gross working interest in the PP-F12-4 and PP-F12-5 directional wells, and a 32% interest in the PP-F12 and PP-F12-3 wells. It holds a minimum 32% interest with the potential for higher interests, in any additional development wells to be drilled at Belmont Lake.
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