Omax Begins Production from Two Wells at Big Lake Leduc
|Thursday, August 14, 2003
Omax Resources has placed two wells on production at Big Lake Leduc in Canada. The 6-25 well drilled in September 2002 initially flowed under test 990 BPD of 38 API oil plus gas and condensates. This well was placed on production at an initial rate of 1,100 BPD plus gas and condensates. The 5-25 well flowed up to 2,200 BPD during test and was placed on production at 800 BPD.
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.