Blackdog Resources Ltd. has announced that after successfully completing and swab-testing the Souris Valley formation of its first horizontal light-oil well in SE Saskatchewan,, the well has been tied in to a nearby pipeline and battery and commenced production on September 24, 2008. Blackdog has a 60% Working Interest ("W.I.") on the property and a Private Oil and Gas Company ("Privco") has a 40% W.I and operates the well. The well was drilled, tested, completed and tied in within the $1,000,000 budget (Net $600,000 to Blackdog) that was anticipated.
The well commenced production at a rate in excess of 100 Barrels of Oil Per Day ("bopd") (net 60 plus bopd to Blackdog) and has maintained steady oil production with lower water cut rates then the company had anticipated through its first ten days of production. The well is located at Whitebear in SE Saskatchewan near the town of Carlyle.
At today's price of approximately C$100 per barrel for light oil, the company is expecting the well to generate cash flow in excess of C$100,000 per month to Blackdog at current production levels. This effectively more then doubles the Company's cash flow while adding only nominal additional overhead costs to the Company's operations.
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