With the absence of surface disturbance or detrimental impact, Silver Star initially estimated a short approval process. However, the Project was subsequently required to submit a full application including environmental survey, appraisal and engineering for the proposed underground boring and pipeline extension.
Silver Star and its partners that include Fidelis Energy, Inc. have now completed the pipeline except for the remaining 177'. Once the permit is received which is expected at any time, tie-in and initial production of natural gas can occur in a matter of days. As previously announced, a contract is in place with a natural gas purchaser. Once connection and tie-in is completed, the well will be evaluated as to I.P.R.'s (Initial Production Rates). Silver Star is optimistic that gas flow rates will be similar to area analog gas fields and that 5,000 mcf/day is a realistic target.
Silver Star also says that a second gas well permit application was made in mid-October and that the joint venture partners received the approved permit on November 1st. The Company and partners are currently negotiating for a drilling rig and will soon be able to announce the spud date of the well. Silver Star anticipates the drilling, completion and tie-in to the newly completed pipeline with natural gas sales from a second well before year-end.
Most Popular Articles