PetroGlobe has provided the following update on its daily production rates and work activities planned for 2009.
Since January 1, 2009, the Corporation has tied in an additional natural gas well bringing current net production to 3,268 Mcf/d or 544 BOE/d. Certain wells brought on-line during the fourth quarter of 2008 have been producing at restricted rates due to pipeline and processing plant capacity limitations since the fourth quarter 2008. The Corporation estimates that an additional 1,000 Mcf/d or 167 BOE/d will be produced once restrictions are removed. In addition to the production currently under restricted flow, the Corporation has four wells (3 net to the Corporation) in inventory to tie in and expects an additional 732 Mcf/d or 122 BOE/d net to the Corporation once on stream.
Based on current flowing production and behind pipe production the Corporation has a combined production potential of 5,000 Mcf/d or 833 BOE/d.
The Corporation's remaining first quarter capital expenditures are expected to be $0.5 million which includes an additional tie-in and one new drill under farmin. The new drill is a result of a 3D seismic defined, multi-well light oil prospect. The Corporation also has identified numerous natural gas drilling locations on its land in Pembina and will prioritize these locations along with a remaining two well commitment under farmin for drilling later in the year. Depending on drilling results, tie-ins will commence immediately after drilling is complete.
The Corporation also is pleased to announce an 80% increase to the Corporation's borrowing base to $1.8 million from $1 million. The increase was granted as a result of flow test data available from the recently completed drilling program. The Corporation currently does not have any outstanding amounts drawn against its credit facilities.
As a result of its operational control over its asset base, low cost capital projects and strong financial position, the Corporation will continue to execute its strategy of building shareholder value through prudent management of its drilling inventory and developing new exploration opportunities.
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