New Western Energy Corporation, an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas and other minerals in North America, announced that it has completed the acquisition of an Oil & Gas lease consisting of 80 acres adjacent to its Winchester & Thomas leases in Rogers County, Oklahoma. The lease known as Winchester II has 5 existing oil and gas wells and one water injection well that currently produces an average of 4 barrels of oil per day (bopd). Subsequent to this strategic acquisition, Company's combined leasehold area in Oklahoma is now approximately 1,830 acres with 130 wells and 11 disposable wells.
The Winchester II lease has several drilling opportunities from multiple proven oil and gas formations with historic oil production mainly occurring in the Bartlesville and Burgess formations which are contained in this lease. Further, the water injection well on site will allow the Company to increase pressure and thereby stimulate production, improve the reservoir recovery factor and continue to maintain improved production rate over a longer period. The additional acreage and its strategic location lets us control a more uniform pattern of the water flood "pressure maintenance" program we have planned for 2014 development.
"This acquisition adds to our already established track record in Rogers County, Oklahoma and we expect immediate improvement once water is injected in the reservoir as this enhanced oil recovery method will increase our cash flow by improving on the existing production rate and will allow us to recover more oil from the reservoir," said President and CEO Javan Khazali.
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