Upon acquisition of Gillock, the Company engaged in an extensive geological and operational review. The majority of wells at Gillock were completed and produced only from the Big Gas Sand formation. Accordingly, as its initial workover program, the Company re-entered and obtained modern logs (PDK) in 8 wells to identify remaining Big Gas Sand reserves as well as potentially productive shallower pay zones. These efforts led to recompletion of the SGU #83 well in the Big Gas Sand formation in December which boosted Gillock gas production from 300 mcf/day to over 900 mcf/day; oil production from the SKU #18 remains steady in the 16-20 barrel per day range. In addition, these efforts identified a number of wells with shallow pay potential.
The Company has now commenced the next phase of its Gillock workover program and over the next few months, recompletions will be attempted in up to 8 wells targeting either the Big Gas Sand formation or the recently acquired shallow formations. In addition, the Company has contracted for a drilling rig to drill a Big Gas Sand test well to be located in an un-drilled area of the gas cap commencing in June. This well will also test the deeper middle and lower Frio horizons.
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