Wiser Accelerates Fruitland Coal Bed Methane Development
The Wiser Oil Company
|Wednesday, December 17, 2003
The Wiser Oil Company announced the completion of the Rosa Unit #342A in the San Juan Basin area of northwest New Mexico. The well was drilled to a total depth of 3,400 feet and completed in the Fruitland Coal formation. During completion operations the well was flow tested at rates of up to 2.1 MMCFD. First production is expected by the end of the year. Wiser owns a 44.7% working interest in the well.
The Company's San Juan Basin assets were obtained through lease sales in the 1950s and are concentrated in eleven federal units operated by Burlington Resources, ConocoPhillips, Devon Energy Corporation, Pure Resources and Williams Production Company. Wiser's working interest in the units varies widely but averages approximately 1.8% in over 3,000 gross wells. Wiser's net gas production from the area, including volumes expected from the Rosa Unit #342A, will be an estimated 7.5 MMCFED by year-end, 31% of which is related to coal bed methane wells.
Development activity on the Company's properties is essentially continuous due to the large amount of land and wells contained within the units. In 2003, the Company participated in approximately 110 new wells and 270 recompletions or workovers.
Based on information available at this time, the Company expects to participate in over 100 Fruitland Coal development wells in 2004. These wells will be drilled on 160 acre spacing as a result of a recent change in well density regulations. An additional 60 wells will target the MesaVerde and Dakota formations.
Matt A. Eagleston, President of Wiser Oil, said, "Wiser's San Juan Basin assets have been solid contributors of production and cash flow for many years. Our reserve base has held steady or increased in each of the last ten years due to ongoing development activity. This pattern of reserve replacement is expected to continue with the recent change in Fruitland Coal spacing rules. In addition, increased pipeline capacity from the area has contributed to higher net wellhead prices."