Westmont to Boost Production at Marcellus Wells
Westmont Resources has completed the review of the June 2011 production revenue for operations in our 3,400 acre leaseholds in the Marcellus Shale region in the southwest tier of Pennsylvania and northwest tier of West Virginia. Preliminary production on the leaseholds has 41 working wells, of the 120 currently drilled on the properties, producing .6 to .9 barrels of oil per day per well. Total daily production is averaging 29.93 barrels of oil per day from these 41 working wells. June production totaled 891 barrels or $112,526.30 in gross revenue from production.
Westmont began implantation of Phase 1 of it operations plan to increase production to over 3,500 barrels per month by the end of the 2011 calendar year. Westmont anticipates placing into production an additional 12 wells by the end of July 2011 for a total of 53 working wells. We anticipate revenue to increase to over $145,000 per month by the end of July 2011 from the production of these first 53 working wells. Upon completion of the first phase of our production program, Westmont anticipates having 170 of the 212 existing wells in production earning estimated gross revenues of $321,300 per month based on current oil pricing in excess of $90 per barrel.
"Our specialty is applying cutting-edge technology in order to 'wring additional value from' long-lived, low risk natural gas and oil properties - To squeeze more oil out of mature basins. These new Pennsylvania and West Virginia assets are an excellent fit with our existing core areas and will expand our portfolio. Phase 2 of our production program will include the implementation of our patented, proprietary technology to increase production by a factor of 6 with anticipated production in excess of 5 barrels a day per well. Our estimated monthly gross revenue would increase from an estimated $321,300 to over $2,295,000 after implantation of our technology on all existing wells," said Glenn McQuiston, Westmont's President.