Sproule Associates have undertaken an independent reserve report and estimate proven plus probable reserves as of 1/12003 of 1 million barrels of oil gross, 145,000 net to the company. The drilling of this second well further confirms these reserves.
To optimize recoveries from the reservoir production from each well has been limited and combined production during June, 2003 was 1,100 BPD plus gas and condensate.
The company has a 15% Gross Overriding Royalty on this production and received, net of all costs and charges, C$41.10 per barrel during the month of June.
Omax expects its northern Alberta Sawn Lake well in to be tied into production later this year after committing to the development proposal of the operator. The 2,700 meter well produced between 2.2 and 2.5 mmcf/d on extended flow test. The Company has a 5% interest and an option to participate in the drilling of additional wells on two sections in close proximity.
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