NORTHERN SUN EXPLORATION COMPANY INC. (the "Company") is pleased to provide an update to its exploration and capital expenditure program for Alberta and Saskatchewan.
The Company has completed its 2007 drilling program for a total of 8 wells and upon initial completion results the Company expects to have economic production from 7 of the wells. Production rates will be released after the wells have been tied-in or equipped and producing for 14 days.
The 11-23-87-6-W6 well has been equipped with a pump jack in order to manage the liquids and determine a stabilized gas and oil / water production rate. Currently the well is producing - net to the Company - light oil at a rate of 35 boepd, and the Company expects the gas rate to recover and stabilize at approximately 0.4 MMscf/d (65 barrels of oil per day equivalent) from the upper leduc zone.
The Company's 50% working interest 1-23-87-6-W6, 2250 meter multi-zone test well drilled and completed in December is currently undergoing testing. The Company is encouraged with the testing of the Gething zone where oil is currently being swabbed and the well is being equipped with a pump jack in order to manage the liquids and determine a stabilized gas and oil / liquids production rate. The Company already tested both the Leduc and Charlie lake zones with both zones proving to be uneconomic.
The Company drilled 2 multi-zone gas wells and 1 oil well at Grouard. The completions of the wells result in likely two oil wells and one gas well. The oil prospect remains to be tested within the next two weeks upon the installation of temporary facilities. The gas well has been briefly tested and is planned to be tied-in to a nearby company pipeline, and together with the company's other existing stranded gas wells will form the basis and provide economics for a gathering project which would see the currently stranded gas, and all new volumes become tied-in to the local gas co-op so the wells can produce near their full capacity. If the Company's 2 new oil wells produce at economic rates, such oil production will be trucked to a terminal approximately 25 miles away.
The Company drilled two exploration wells and completion results indicate likely a gas well and an oil well. The gas well has been tested and the Company is currently obtaining approvals to tie-in to a nearby third party for gas production. The oil well will be tested in the next two weeks upon the installation of temporary facilities. Production rates will be released upon both wells producing for a period of at least 14 days in order to establish an accurate rate of production. The Company paid 100% of all costs to earn a 65% working interest in the wells.
The Company drilled and completed the multi-zone gas test well. The well will be tied-in to a nearby third party operator within the next 10 days. Production rates will be released on the well upon it producing for a period of at least 14 days in order to establish an accurate rate of production and capacity of the third party system. The Company paid 55% of all costs associated with bringing the well into production to earn a 45% working interest.
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