At current prices, the Company projects its cash flow from the project to be $7,500 per day or approximately $225,000 per month from the 19 active wells.
The Company recently advanced a $500,000 non-refundable deposit and will select debt financing being offered from several financial institutions to complete the purchase prior to December 01, 2005. Immediately thereafter, an aggressive well recompletion program that is designed to increase daily oil production to over 240 barrels/day and 2,250 mcf of gas/day over the next 12 months will begin. Concurrent with the well recompletion program, 3D seismic will be acquired over the field which will be integrated into a full engineering simulation of the Hunton reservoir dynamics. Based on these advanced technical studies, the Company plans to drill horizontal wells for both oil and gas production to fully realize a possible upside potential of an additional 10 million barrels of oil and 10 BCF of gas reserves.
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