Enterra Energy Trust reported on the status of its operations in Oklahoma. Enterra's wholly-owned subsidiary Altex Energy Corp., acquired in early 2006, has continued development of the extensive Hunton resource play through a drilling and dewatering program.
With the exception of the three acquired wells, all producing wells have been drilled, completed and put on production under a farmout arrangement. Under this agreement, Enterra bears only minor capital costs related to this drilling program. The Trust's venture partner pays 100% of the cost of drilling and completing the wells in exchange for 70% of Enterra's working interest.
The Trust estimates that, as of early March, wells drilled under the farmout agreement contributed approximately 740 boe/day to overall production of approximately 4,476 boe/day in Oklahoma. The overall production mix is approximately 90% liquids-rich natural gas and 10% oil, on a boe/day basis. This production is anticipated to rise as more recent wells are further dewatered, enhancing hydrocarbon production, and as new wells are drilled and brought onstream. There are currently three rigs drilling on the project.
Enterra also reports that production difficulties caused by the ice storm in December are now considered to be completely recovered.
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