Crocotta Energy has increased current production to over 2,600 boepd and tied-in an additional 400 boepd that will be onstream next week for total corporate production of 3,000 boepd (40% light oil & NGLs, 60% natural gas). Crocotta estimates that Q208 production will average approximately 2,800 boepd.
The increases came primarily from a successful Q108 drilling program and the implementation of a waterflood scheme at Niton. Crocotta is also drilling 2 additional wells and completing the remaining 2 wells from its Q108 drilling program.
Crocotta has 4 key growth areas: West Central Alberta; Smoky, Alberta; Tupper, British Columbia; and Lookout Butte, Alberta.
West Central Alberta is a multi-zone area characterized by liquids rich natural gas and light oil and is Crocotta's largest producing property at 2,100 boepd. The Company has assembled 69,000 acres of land with a working interest of approximately 70% and will continue to focus primarily on Rock Creek and Mannville exploration and development.
Crocotta assembled a land base of approximately 25,000 gross (19,700 net) acres of land via crown land sales and farm-ins. In Q108, Crocotta drilled 3 (1.2 net) successful wells and will have increased area production from nil to 300 boepd once onstream next week. The Company is also drilling 2 additional wells in the area prior to break-up and has identified numerous follow-up locations based on its success.
Crocotta holds an average 71% interest in approximately 11,000 gross (7,800 net) acres of land in the Tupper Area of British Columbia plus has a farm-in agreement to earn an additional 1,470 gross (880 net) acres. The lands are located in the Montney fairway that has significant natural gas resource potential. The Company is currently in the process of recompleting one well in the Montney on a vertical basis and will make further capital decisions based on the results.
Crocotta holds a 50% working interest in 2,800 acres of land and will earn (via farm-in) an additional 1,020 net acres by drilling 2 wells in 2008. Crocotta is currently completing a Mannville discovery that was drilled late in 2007. Based on logs and offset production, the Company believes there are up to 4 commercial pay zones in the well.
Crocotta anticipates releasing its 2007 year-end reserves and financial results on Thursday March 20, 2008.
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