Century Petroleum Corp. revealed that the newly discovered gas condensate field on the Shadyside Farm has begun hydrocarbon sales. The project went on stream on January 7th, 2008 at 1pm. Century holds a 15.17% working interest after casing point in the project. At current prices, Shadyside #1 could generate potential gross revenues of approximately $375,000 per quarter to Century.
On its first day of production, the Shadyside #1 flowed at a rate of 84 BOC and 0.9 MMCFG via a 5/64 choke. No water was produced. The FTP was 7,700 PSI with no stimulation. On the second day of production, the production rate was increased to 136 BOC and 1.6 MMCFG. The Company plans to increase production rates gradually until reaching a stabilized optimal rate based on reservoir performance. Sale agreements are in place with third parties to sell the natural gas and liquid hydrocarbons from the Shadyside's discovery well. The gas sale agreements are pegged to the Henry Hub posted natural gas price with a modest differential. In addition, Shadyside's high quality oil will allow Century to receive a premium price per barrel over the posted South Louisiana light oil prices.
"The Shadyside discovery and its initial revenue stream constitute a great achievement for Century. Since I joined the company, we were able to secure high impact quality projects, which are now starting to bear fruit. Shadyside #1 was put into production within 4 months of the initial discovery and has been an excellent start to our 2008 exploration season. We are looking forward to additional success with our HP-HT project inventory this new year," said James Hersch, CEO of Century Petroleum.
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