Hyperdynamics Corporation reported that its Louisiana-based operations reported February oil sales in excess of 4,800 barrels representing a fourth straight record setting month. The subsidiary, Trendsetter Production Company (TPC), with combined production on operated and non-operated leases, has realized a steady increase in gross barrels of oil sold from 1,425 barrels, in January 2007, to 4,880 barrels now sold in February 2008.
As a result of the extensive work performed on new leases obtained since last summer, record revenues are being realized while maintenance and lifting expenses (per barrel produced) continue to decrease. On its existing leases and without drilling new wells, the Company estimates 80 to 100 barrels of additional production may still be attained from additional nominal rework and recompletion. This work has been delayed by seasonal weather and rising water levels along the Mississippi River, but is planned for completion as soon as conditions allow.
Additionally, the Company is now preparing to drill several new developmental wells on existing leases and is working to acquire additional producing properties. With adjacent production, extensive well control, and engineering reports, the drilling targets currently lined up have multiple pay zone potential. New leases that are being evaluated are in the same general area as current operations. They have a history similar to the Company's existing producing leases with the characteristics of previous production, having existing shut-in wells, and having all or portions of the production facilities in place. The combination of opportunities to reestablish production in previously produced zones, recomplete existing wells in zones never produced before, and additionally drill offset development wells, should allow the Company to continue its rising production and revenue trend. At the same time, with improved economies of scale, use of new technology, and expected free flowing and higher volume development wells, lifting costs per barrel are expected to drop significantly.
Mr. Jeremy Driver, President of TPC stated that, "Successful recompletions and reworks of our existing properties, together with our planned lease acquisitions and new drills, will give many avenues to keep our production rising and efficiencies improving. We are very optimistic about our domestic operations and opportunities."
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