Shiloh Project Compressor/Tap Facility
At the Shiloh Project, the new compressor facility is nearing completion. Admiral Bay is currently awaiting completion of the tap connection to Southern Star Central Gas Pipeline, Inc.'s major pipeline. This connection to the main pipeline is anticipated to be finished over the next few days.
Admiral Bay presently has 17 wells flowing gas at the project. A further 13 wells are ready to sell gas when the pipeline capacity increase has been completed. There is also an additional six wells awaiting fracing that have already been hooked into the new gathering system. Gas produced at the project is currently being sold into a third party sales line that is constraining production to approximately 300 MCFGPD, due to line limitations. Production is also being constrained by limitations on water disposal, due to pipe size. The Company has recently completed the drilling of an additional water disposal well at its new tap and compressor site. This new disposal well has significantly increased capacity and will allow the project to handle up to 5,000 bbls of water per day.
Management anticipates production at the Shiloh project will increase to over 1,000 MCFGPD, once this new facility is operational and these additional wells are opened to the sales line.
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