The first well, SA-1, confirmed the oil discovery in the KT1 and KT2 carbonate reservoirs. SA-2 and SA-4 are targeting the same reservoirs to a depth of 13,100 feet and will help delineate the northern and southern extent of the field over nearly a 3 mile distance. "Based on the results of these wells" noted Bruce Falkenstein, Vice President Exploration & Geology, "the Company expects to significantly increase proved reserves and should see meaningful production volumes by year-end."
The testing program on SA-1 continues, but was slowed due to bad weather which delayed the arrival of the completion rig. The company expects to place the well on a long term testing program by the end of the month.
Commenting on this recent news, Lorrie Olivier, Chairman and CEO of TMXN said, "The contracting of another rig to accelerate the drilling of our field follows quickly behind our recent $30 million financing. With this aggressive drilling program, we are on track to achieve our goal of producing sufficient cash flow from the Field to fund our development operations and debt service on the earliest possible timeframe."
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