The re-drilled well targeted the Keg River Formation, 70 meters north-west of the original well and encountered and undrained oil reservoir at the new location. Production to September 3, 2006 has averaged 90 barrels per day oil from 169 barrels per day of fluid.
This is the company’s third well put into production at the Virgo Zama project. A National Instrument 51-101 compliant reserve report will be released to reflect the Company’s increased oil reserves upon completion.
The Virgo-Zama area has been a prolific producer of oil and gas from Devonian Keg River reefs. The Company’s prospects are defined by 3D seismic and all proposed wells offset former producers in existing pools. Preparations are currently underway to drill two additional wells at the project by year end 2006.
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