Drake Pacific Enterprises Ltd. (DPE) has completed preliminary production testing on the previously announced Swan Hills oil discovery.
DPE ran a multi-day swabbing program that has produced an average rate in excess of 240 Bbld; however, as pressure continues to build on a daily basis the company must wait for stable pressure or 14 days from completion to begin production. Production should commence before April 10th.
DPE expects that the well will have an initial production rate over 100 Bbld (Net 70 Bbld plus royalties). As DPE's current production is approximately 130 Boe a day, this discovery will have a significant impact on oil reserves, production, and cash flow.
The company plans to drill a second well at Swan Hills as part of the 2008 Fall drilling program.
DPE and its partners (DPE net working interest of 22% to 57%) have also completed construction of a pipeline to allow the reactivation of both oil and gas wells in the Sousa area.
Total gross production from these two wells was approximately 130 Boe per day (35% oil) at the time of shut-in. Production is expected to begin within weeks.
In addition to the ongoing programs at Sousa and Swan Hills, DPE plans an aggressive program this spring with new drills at Retlaw (oil & gas) and Suffield (oil).
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