Drake Pacific Enterprises Ltd. announces that the tie-in of the Swan Hills oil well and the reactivation of the two shut-in Sousa wells has resulted in company total production exceeding 200 Boe/d and the Company is set to meet its Q2 exit target of 250 boe/d.
Drake Pacific Enterprises Ltd.and its partners (Drake net W.I. 25% - 53%) have completed the construction of a pipeline and the reactivation of both oil and gas production wells in the Sousa area. Initial gross production from these wells is 50 Bopd and 1,050 Mcf/d. Production levels are expected to level off at approximately 40 Bopd and 650 Mcf/d (net 10 Bopd and 300 Mcf/d). Enhanced production projects (work-overs) continue on five existing shallow gas wells (W.I. 65%) on adjacent lands and are expected to add to production at Sousa late in Q2.
The Swan Hills oil well (Drake net 70%W.I.) drilled in Q1 began production on April 12, 2008. Since break-up occurred at the pivotal time of completion and production start-up, DPE opted to put a hydraulic pump jack on the well which is limiting production from this well to 50 Bopd. We will continue testing and evaluating this well to determine at what point it might be prudent to change pumpjacks in order to realize the higher levels of production.
In addition to the ongoing programs at Sousa and Swan Hills, the company plans an aggressive program this spring with new drills at Retlaw (oil) and Suffield (oil) and a winter program with new drills at Sousa (oil & gas), Swan Hills (oil) and Suffield (oil).
"Our first quarter efforts were key to the successes at Sousa and Swan Hills, as well as optimizing existing production at Retlaw, Provost, Gilby, Alderson, and Carmangay. The short-term financial pain of Q1 from these efforts has resulted in significant longer term value for our shareholders and we believe our ongoing 2008 program will continue to do so." said Drake president, Roger Penner.
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