Stylus to Expand Production at Vulcan
Stylus recently obtained pressure information during the testing of the Vulcan 07-29-015-25W4M oil well (the "7-29 oil well") drilled in late March 2006, indicating that the 7-29 oil well is not in pressure communication with the company's shut-in gas wells.
The company has also determined that there is pressure communication between its gas wells and only minor associated oil in the gas pool. As a result, Stylus expects that both natural gas and oil production at Vulcan will proceed concurrently.
The company has had approximately 2,000 (1,000 net) boe per day of natural gas production shut-in pending the determination of whether the gas was associated with the oil discovery.
Three (1.5 net) of the company's Vulcan Sunburst gas wells have commenced production of natural gas and liquids at an initial, aggregate, constrained rate of approximately 400 (200 net) boe per day. The company's fourth gas well has not yet been tied in. Production is currently constrained by the capacity of a third-party gas pipeline system and is subject to a best-efforts gas processing agreement. To alleviate the pipeline production constraint, Stylus is completing a gas pipeline to a high-pressure gas gathering system to a second gas plant in the area. This second pipeline is expected to be operational by the end of this month, and additional natural gas and liquids production of approximately 600 to 800 (300 to 400 net) boe per day is expected to be able to flow against pipeline pressure at that time.
Stylus also has entered into an agreement to purchase an existing natural gas plant located in northeast British Columbia and plans to relocate the compression and dehydration components to Vulcan. This compression facility is expected to be operational in September 2006. It should allow the company to deliver its balance of behind-pipe production capability into the high-pressure Vulcan pipeline system.
In addition, Stylus has completed its 16-20-15-25W4M development oil well at Vulcan and is currently testing crude oil. This well is expected to commence a four-month production test in July, subject to installation of a single-well battery.
With the Vulcan production additions, Stylus expects to exit June 2006 at approximately 1,800 to 1,900 boe per day. Stylus' average production for the first quarter of 2006 was 1,250 boe per day.
Stylus Energy Inc. is an Alberta exploration and production company focused in southern and northeastern Alberta. Stylus common shares are listed on the Toronto Stock Exchange under the symbol "STY".
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension