Lux Energy Corp announced that the company acquired its first working interest in Alberta. The project is a 2-well program in Barrhead West Central, Alberta, near Edmonton.The Barrhead C & D wells project includes two wells, one is a capped re-completion well in an area with proven production records and the other is a new drill target in a proven development field. The new drill target was successfully drilled and encountered 3 gas zones and 1 potential oil zone in the Baniff formation. Well D is scheduled to be uncapped and tied into the pipeline around the end of July.
The first well has been drilled to a depth of 1,220 meters or approximately 4,000 feet. This well was drilled this spring and has encountered 4 gas zones, and encountered two pay zones in the Belly River structure: the Viking and Banff zone. The Operator perforated the Banff zone and the well free flowed at 680,000 cubic feet with an additional 1 BBL of liquids per hour. The well flowed for 24 hours and settled in at 400 psi. The well was shut in and it pressured to 1000 psi in less than 1 hour. Indications are that this should be a prolific flowing zone with excellent reserve potential given how quickly the well pressured up. The Operator has installed meters in the hole which will remain for 1 week to access more precise information on the reserve potential.
"The Barrhead C & D wells have been projected to produce approximately 1850 mcf/day of Natural Gas and 60 bbl/day of Oil & Condensate. The Company's working interest would be 4% and is estimated to provide over $200,000 in annual income based on current spot prices. If oil and gas prices rise the revenue from this interest would also rise. Given current oil and gas prices we believe that this working interest will not only provide Lux Energy with a solid revenue stream going forward but it will likely increase. Lux Energy has a number of other producing acquisition targets and is currently in negotiations."
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