Prior to the work-over, the well had been producing 90 barrels of oil per day. Over the next several days, flow rates will be gradually increased to determine the optimum flow rate. Plans are now underway to construct a natural gas sales line to market the natural gas from both the Lucy Lee well and the Mina Travis well, which will provide a significant increase in field revenue. Data received from these first two wells in the new field is now being analyzed to determine the optimal location for the next field development well planned to be drilled this summer.
The Lucy Lee No. 1 well, the field discovery well, is currently producing at daily rates of 60 Barrels of oil, 195,000 cubic feet of gas and 281 barrels of water. Cumulative production to date is about 30,000 barrels of oil and 82 million cubic feet of natural gas.
Maxy has a 25% working interest in the well, which is subject to a 25% back-in after payout. The remaining 75% working interest is held by private investors. The net revenue interest (after royalties and overrides) to working interest owners is approximately 75%. Therefore, after payout of each well and back-in, Maxy will have an 18.75% working interest and a 14.1% net revenue interest.
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