The target of this first well, the Werderman 1-21, is the South-eastern portion of the Lenox Silurian Platform reef which is believed to extend South-east of Portrush's existing light oil production and natural gas indications on the delineated portion of the reef where the Richards and Martin wells are productive. The target has been identified on a conventional seismic line. Information from the well will be released as soon as it is received from the operator.
The company will earn up to approximately a 20% working interest in the well which is approximately 300 feet west and 500 feet south of the Martin well. Oil production from the new well can be put on stream relatively quickly and negotiations are ongoing to obtain a right of way for a gas pipeline to sell the gas from the existing wells. This gas is currently being flared and any new gas production, in particular the uphole gas which has been encountered in the existing wells can be brought on stream as soon as the pipeline is installed. The company has forwarded it share of the drilling costs to the operator.
Through December 2003 the two wells had produced a cumulative total of nearly 100,000 barrels with the Martin well not contributing to that total until April 2003. Typical reefs in the area can vary in size from approximately 300,000 barrels and 2BCF to over 1,000,000 barrels and 10 BCF of recoverable reserves.
Additional developments on the property including additional seismic are currently underway. It is anticipated that an analysis of this seismic will lead to the next drill location which will target the crestal portion of the reef. The Martin and Richards wells initially tested 450 barrels a day but they are currently choked back and the gas production is being flared.
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