Low Temps Cause Production Cutbacks for Saga Oil

SAGA produced 1100 bopd at New Year but had to cut back the production and change production plan due to unusual extreme low temperatures reaching minus 37 degrees C. The low temperature made it impossible to perform completion work and well stimulation in a safe and efficient manner. The company was forced to change plan to focus on optimizing single wells instead of several wells in parallel.

The single well optimization resulted in obtaining a peak production of 555 bopd from the best well. This well is now in stable production delivering 420 bopd. SAGA expects to reach more than 1000 bpd again by the end of the month notwithstanding temperature problems.

Malvin Hoeydal, President and CEO of SAGA Oil ASA comments: "It is an unfortunate fact that operating in such extreme low temperatures hamper the daily work as certain type of work cannot be done safe and satisfactory under such conditions. But our new production record from one of our best wells of 420 bopd is proving that our operational team manage to perform professional well stimulation and completion also during extreme cold. Our production will steadily continue to increase throughout the year."