Primary Petroleum's Twin Lakes 7-35 gas well (100% before payout and 50% after payout) has been tied in and commenced production on February 9, 2009. The gas well is currently producing at approx. 300 thousand cubic feet per day ("mcf/d") or 50 barrels of oil equivalent per day ("boe/d"). The production from this gas well has increased the Company's current overall production by 47% to 140 boe/d.
"We are very pleased to have been able to tie-in this well on time and on budget, since its location is winter access only," stated Mike Marrandino, President & CEO of Primary. "We can now inform our shareholders that the production from this well at current market prices will enable Primary to operate on a cash flow neutral basis in this current market environment."
Primary would also like to update the investment community that further to the News Release dated October 8, 2008, it has successfully completed the drilling and testing of the Mannville 13-33 gas well. After reviewing the extended production test with its joint venture partner it was concluded that since the tie-in of the well is accessible year round, the well would remain shut in until current gas prices increased to improve the commercial viability of the tie-in, currently estimated at $300,000 ($150,000 net). Based on the success of the Mannville 13-33 gas well, Primary is currently evaluating a 2D seismic program over its remaining 2,170 net acres that it holds in the Swimming Mannville area.
Primary Petroleum has an operated working interest in 1,280 gross acres in the Twin Lakes area of East Central Alberta. Primary re-completed and tested the 7-35-61-18 W4M Glauconite gas well situated on its lands and the well stabilized at over 800 Mcf/d on an extended test.
Primary Petroleum is evaluating additional seismic data over its lands in the Twin Lakes area in its continuing effort to identify additional prospects for the Company. Farm-in and acquisition opportunities are considered a good approach to optimization.
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