In the Colorado D-J Basin, 10 wells have been worked over and to date production has increased over 50% from 700 mcfpd to 1,100 mcfpd. The Company is currently installing electronic control systems to allow for remote monitoring and optimization of gas wells to further increase production. In Zavala County, initial workovers have increased production approximately 40% so far, from 500 mcfpd to 720 mcfpd. Currently the company is evaluating candidate gas wells to be fracture stimulated in both Colorado and South Texas.
In June the company announced the re-completion of a gas well in Cameron Parish, La., where a 13,000-foot gas well was plugged back to a new zone in the Lacassine field. This initial work increased production from 500 mcfpd and 40 bopd, to 1,500 mcfpd and 100 bopd. Since then, additional facility work has been completed in the field and the production has leveled out at 2,200 mcfpd and 120 bopd. The strong water drive, natural gas reservoirs of this field require the company to produce over 6,000 barrels of water per day, which is injected into onsite disposal wells. This co-production technique is allowing GulfWest to recover additional natural gas reserves which had been previously abandoned.
In addition to the activities discussed above, workovers are under way along the Texas Gulf Coast, and at GrandLake field in South Louisiana. The Company expects to see an increase in production from these workovers beginning in September. The $3.5 million workover program will be completed this year and additional development activities are currently being planned for 2005.
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