Mr. Rowland Carey, Chairman and CEO, stated, "The wells that have been reworked and refurbished are generating an average of more than 1 to 1 1/2 barrels per day as compared to the 1/2 barrels per day average produced prior to reworking and being refurbished. As this work has begun in the first quarter, continued improvement has occurred on production and we will continue to work to optimize these wells over time."
Mr. Carey further stated, "By the end of the first quarter, the beginning reworked wells provided sales of 1,989 gross (1449 net) barrels of crude (BOC) which the Company sold at an average price of $91.64 (time vol weighted) for total net revenues of $138,269.95 after payment of lease royalties and taxes. Additionally, we believe production will reach 1,500 barrels of oil during the month of April."
With the successful rework start up and revenues in Q1, 2008, the Company intends to accelerate all of its rework and drilling programs in the Bateman Field during the remainder of the year. The Bateman Field is in Caldwell and Bastrop Counties in Texas, has approximately 88 wells on 1,200 contiguous acres and is typical of the Company's core focus of field prospects with a shallow field depth of 2,600 feet.
Current daily production has continued to rise and the company is anticipating approximately 1,500 barrels of production during the month of April with production rising as it completes reworking the existing wells and commencement of drilling on the balance of the field. The Company expects the total number of wells increasing upwards to approximately 111 without additional leases or more sophisticated production technology which the Company may utilize to maximize the field.
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