The well has been production tested at a rate of three million cubic feet of gas and one hundred and twenty four barrels of condensate per day. The current selling price for gas from the property is $7.72 mmbtu and $58.45 per barrel of condensate.
The operator intends to produce the well at a reduced rate of two and a half million cubic feet of gas per day. This will lower the condensate production to approximately one hundred and fourteen barrels a day. At the proposed level of production the well will generate gross revenues of approximately $780,000 per month.
An absolute open flow for the well has been calculated at 14 million cubic feet per day.
Portrush holds a 10% working interest.
All production testing was conducted into the sales line. The existing production equipment has been upgraded to deal with the larger production volumes and the much higher flowing tubing pressure. This work is now virtually complete.
Martin Cotter, the Company's President and CEO, stated, "We are very pleased with the initial prognosis for this well. The potential for near-term addition of new reserves and production to our established production base is an important element of our basic strategy to build a mixed portfolio of exploration and production opportunities to create substantial value for our shareholders."
A final interpretation of the overall hydrocarbon column encountered, and hence estimated reservoir volumes and a full analysis of all the log data and fluid sampling recovered from the well is underway. We anticipate this preliminary report will be complete within a number of days.
The Mission River lease is being developed by McAlester and is located at the south end of the town of Refugio, Refugio County, Texas. The field has multiple pays at depths ranging from 2,000 to 8,500 feet. Portrush has a 10% working interest in the field. To date seven wells have been drilled and all seven wells have been placed on production.
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