Imperial Petroleum Beginning Repairs to Coquille Bay Production Facilities
Imperial Petroleum is mobilizing equipment and services at the end of January to make repairs as a result of damage by hurricane Katrina to its Coquille Bay production facilities. Imperial expects to return the field to approximately 75 Bopd and 800 mcfpd producing rates by the end of February 2006. Additional delays in moving to the field have been caused by the lack of available equipment and services in the area. Also in south Louisiana, we are planning to move a coiled tubing unit into our Bastian Bay field in January to jet the water out of the well and bring it onto production. This well previously tested at rates as high as 2,500 mcfpd. In Mississippi, we have secured a rig to finish installing pumping equipment and bring our unit 7-2#1 well online. We expect production to average about 300 mcfpd and 75 Bcpd initially. In East Texas, a total of six new wells are online and producing under existing farmouts. Initial rates are averaging 750-1,200 mcfpd per well in the Cotton Valley. Assuming the above operations are successful, the Company's net production would increase by approximately 2,700 mcfpd to nearly 4,000 mcfpd and net cash flow would increase by approximately $500,000 per month based on current commodity prices.
Our partner in central Texas is preparing to spud the initial horizontal well on our acreage to be completed in the Barnett shale in Jack county, Texas. The company retains a 5% carried working interest in each well drilled under the farmout. There are currently three vertical wells producing from the Barnett on our acreage. And in the New Albany Shale play in Kentucky, the Company has purchased 3,000 acres of new leases around our 15 mile gathering system. We presently have 24 vertical wells that will be worked over to re-establish production from the New Albany and our plans are to mobilize a rig this summer to begin drilling horizontal wells. The New Albany shale is a proven gas producer in our area and is approximately 100-150 feet in thickness.
Imperial, through its subsidiaries and affiliates, is active in
crude oil and natural gas production and gold mining. Imperial is
headquartered in Evansville, IN.