Rocksource Completes First Phase of US Drilling Campaign
Rocksource has now completed the first phase of its US drilling campaign, consisting of five wells in the newly discovered Drews Landing field. The campaign has been executed by US subsidiaries, Rocksource Energy Corporation and Sandhawk Energy LLC. All wells were completed on schedule and without any HSE incidents. All of these wells were successful in finding hydrocarbons and will be put in to production in the near future. Two of these wells are already producing to sales at a gross average rate of around 300 barrels of oil equivalent per day (boepd), of which approximately 225 boepd net to Rocksource. Average second quarter production net to Rocksource was 500 boepd. The remaining three wells are currently being stimulated and will be put into production shortly. The 5 wells will secure production within 2007 in excess of our previously stated 1,000 boepd target.
The wells were drilled to depths from 11,500 to 13,500 feet and have encountered hydrocarbons in multiple zones, as predicted. The results of the ongoing testing and associated studies are being used to determine the timing and location of further wells. The expected production rates and volumes require the installation of additional processing and handling facilities for the field. New facilities will be put in place over the next three to four months. These will be capable of processing a gross volume of around 3,000 boepd and improve CO2 removal capacity.
Jacob Sannes, CEO of the US subsidiaries states that: "The success of discovering the Drews Landing field and the subsequent drilling of highly proficient appraisal and production wells shows the potential which may be realized through combining state-of-art technology in Rocksource with the expertise and experience in local US subsidiaries. This success lays the foundation for undertaking additional projects in the US".
Rocksource has previously stated a target production of 1,000 boepd net to Rocksource from its US operation within 2007 and 2,000 boepd
within 2008. These targets will be revised as current wells are put on stream and new wells are drilled.