Magnum Energy Inc. has reported that the Operator of the Cardium well has been granted GPP (Good Production Practices) effective August 1, 2008. The Operator also reported that the ERCB will require the Operator to retire a small amount of over production (306.6m3) during the NOWPP (new oil well pool period); the over production will be retired by the end of August.
Starting in September, the well will be allowed to produce at its maximum rate. The Cardium well initially flow tested in excess of 600 barrels per day of sweet light crude. The ERCB has also granted royalty free status for the first year of production. Magnum has a 31.5% net working interest in the well.
Magnum Energy will announce the stabilized rate of production once the Operator has time to make all the necessary adjustments to the pump and compressor. This adjustment period usually takes about 60 days. In the interim, the operator is preparing an all season road to ensure year around deliveries of the oil.
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