The Company has tested an upper portion of the Leduc zone encountering gas and associated liquids which indicate that the well should initially produce at a rate of 2 million cubic feet per day (1 million cubic feet per day or 166 barrels of oil equivalent per day) net to Northern Sun. The Company believes the well will continue to produce at this rate for approximately 3 months before it stabilizes at a declined rate at which time the Company will perforate an additional Leduc interval which the Company believes will adequately supplement production. A 600 meter pipeline tie-in to a third party facility is currently underway and the Company has been notified by the third party operator that there will be no restrictions on gas production.
The Company will test the lower Leduc oil zone at a later date to avoid damaging the existing reservoir from which it will begin producing in 10 to 14 days. The additional four zones will be tested when the Leduc has been depleted.
The results of this well have validated four additional prospective targets previously mapped by the Company. Provided the discovery well produces as expected, the Company with its partner will establish an exploration plan.
Upon production commencement of this well, total Company production will be approximately 240 boed.
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