Royale Energy has begun selling natural gas from its recent discovery well.
The Wylie #1 went into production December 17 at a restricted rate, which stabilized at 1050 MCF per day. Royale expects production to climb closer to the test rate of 2048MCF per day, as the initial flow data is evaluated.
The Wylie #1 was drilled three miles southeast of the first discovery well, the Goddard 7-1, which is also expected to begin gas sales early in the first quarter. The recent storm caused temporary delays in the installation of pipeline and drilling activity. These operations are expected to resume in the first week of January.
The new production is being sold into the California gas market that has risen to a $6.21 per MCF in recent days. This increased cashflow will add to the company’s drilling investments, significantly increasing proved reserves and leading to first quarter profitability.
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