The well is currently producing light oil from Viking sands with approximately three weeks of production having produced between 35 and 40 barrels per day. The operator feels that with down-hole modifications the well could produce 50 barrels per day.
Oil storage and tank facilities have now been constructed on the leases and sales of production have commenced. The Company, based on the success of the first well, plans to immediately drill a second well as part of the earn-in requirement. Dixon has estimated that a total of 10 wells may be drilled on the Joarcam leases.
Under the terms of the agreement 1048316 Alberta Ltd., Dixon may acquire a 49% working interest in the "4-27" well by the drilling and completion of the two wells on the Joarcam Project which is located in central Alberta. The Project is characterized by a conventional, light oil bearing zone in Viking sands at a depth of 3,000 feet. The property is adjacent to a mature oil producing field where there is excellent well control on a large sand bar that shows 20 feet of pay thickness. Recoverable reserves per well are estimated at 100,000 barrels.
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