The well is being equipped with production equipment, and production is expected to begin in early July. The well was swabbed and tested over a 6-day period for a total of 48 hours and produced 70.67 cubic meters of oil. This corresponds to a swab rate of 35.4 cubic meters per day, or 222 bopd. Stabilized production rates are expected to be approximately 50% of the swab rate.
This well is the second well on the lease of which the company's interest is 12.5%, with 17.5% subject to a gross over-riding royalty of 15% on gas and a aliding acale (1/23, 5%-15%) royalty on oil.
The Virgo-Zama area has been a prolific producer of oil and gas from Devonian Keg River reefs. The four prospects are all define by 3D seismic and all proposed wells offset former producers in existing pools.
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