Homeland Resources has elected to participate in the drilling of the first offset development well at the successful Smoky Hill Project in Southern Oklahoma.
The target area for the Marshall-2 development well is located directly offset the original Marshall-1 oil and gas discovery well which is currently flowing 320 barrels of oil per day. The Marshall-2 development well is expected to test the same productive pay zones encountered in the first well.
"We continue to be encouraged by the significant production rates from each of our first three wells. Another well directly offset the Marshall-1 is the first step of our long-term plan to fully exploit each of these new pool discoveries," said Armando Garcia, President of Homeland Resources. "In addition to plans at the Marshall, the Company and its partners are currently evaluating potential development drilling locations offset other recent discoveries. We intend to begin drilling at those locations as soon as possible."
Total flow rates for the three wells currently producing at the Smoky Hill Project has averaged 405 barrels of oil and 100 mfc of natural gas per day for the past month, and flow rates continue to be strong. The Company expects only minimal, if any, production decline in the near future.
Each prospect location at the Smoky Hill Project was selected based on positive anomalies from a proprietary database of 3-D seismic surveys conducted by Homeland and its partners. Expected total program reserves to be developed at the Smoky Hill Project could be in the range of 750,000 BO and 0.15 BCFG.
Further information regarding drilling of the Marshall-2 offset well and other Homeland Resources activities will be released as it becomes available.
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