Contact Exploration Provides Production Results and Future Plans
Contact Exploration plans to expedite production from the company's booked reserves of 1.2 million barrels and 6.5 bcf natural gas in the 100% owned Stoney Creek Field.
For the month of June, production from the Stoney Creek field was 750 barrels of crude oil. In the month of July production was 900 barrels of crude oil. Optimization of production operations is ongoing and plans are in place to re-work and bring into production up to an additional 14 existing vertical wellbores. Application for re-work of the wells was submitted to both the New Brunswick Departments of Natural Resources and Environment on July 23, 2007. A service rig to conduct the re-works is currently operating in the area and should be available in late September or when permitting is complete. Re-works of existing but non-producing wellbores is an efficient and cost effective method of exploiting the estimated $31 million in proved and probable reserves in Stoney Creek. The initial re-work candidates have been chosen by studying original drilling records and recently recorded well logs. Most re-work candidates have multiple pay zones that were either bypassed or underutilized in the production of the field. We are firmly committed to increase field production levels in Stoney Creek to exploit this known resource.
We are continuing to study the results of the Shenstone G75-2328 well which was recently suspended in the South Stoney Creek field. We are conducting the analysis with our 40% working interest partner in the prospect with a goal of determining the optimum location for the second South Stoney Creek well. An announcement on the next location will be forthcoming when the study of the geology is complete. Analysis from both the Shenstone G75-2328 well and the nearby Downey #1 well will be used to make the determination.
- Contact Updates on Seismic Acquisition, Shale Gas Prospect (Sep 16)
- Contact Exploration Spuds New Development Well at Stoney Creek Field (Nov 24)
- Contact's Canadian Reserves Estimated at Over 1MM Barrels (Jul 23)