WellStar Energy Begins Production on Third Virgo Zama Well
WellStar Energy reports that production has commenced on its third well, 7-22-115-5-W6, at its Virgo Zama project, in northwestern Alberta, as reported by project operator Warburg Resources. The Company's interest is 75% Before Pay Out ("BPO"), and 48.75% After Pay Out ("APO"), subject to a Gross Over-riding Royalty of 15% on gas and a Sliding Scale (1/23, 5%-15%) royalty on oil.
The re-drilled well targeted the Keg River Formation, 70 meters north-west of the original well and encountered and undrained oil reservoir at the new location. Production to September 3, 2006 has averaged 90 barrels per day oil from 169 barrels per day of fluid.
This is the company’s third well put into production at the Virgo Zama project. A National Instrument 51-101 compliant reserve report will be released to reflect the Company’s increased oil reserves upon completion.
The Virgo-Zama area has been a prolific producer of oil and gas from Devonian Keg River reefs. The Company’s prospects are defined by 3D seismic and all proposed wells offset former producers in existing pools. Preparations are currently underway to drill two additional wells at the project by year end 2006.
- Drilling Begins at WellStar's North Dakota Wells (Apr 18)
- WellStar Announces Prophet River Project Option (Mar 14)
- WellStar Energy Begins Production on Third Virgo Zama Well (Sep 06)