Bull's Eye: Open Range Hits Target for 2007 Production
Open Range is pleased to report that it has met its 2007 production guidance targets. The Company's 2007 production averaged 1,450 boe per day based on field estimates. This represents a year-over-year average production increase of 80 percent on an absolute basis and 33 percent on a per share basis. The Company also confirms that it has met its year end exit production guidance for 2007 of 1,650 boe per day.
Currently, the Company's production is approximately 1,700 boe per day with three (1.6 net) wells recently drilled at Ansell/Sundance expected to be brought on-stream during the first quarter of 2008. One (0.6 net) of these wells is the successful earning well of the previously announced five section farm-in agreement. Completion operations for this well were recently executed with nine pay zones being successfully fracture stimulated. In addition, competitive third party processing has been secured and pipelining has commenced for the production of this well.
Field preparations are currently underway at Ansell/Sundance for the construction of the Company operated 20 mmcf per day natural gas plant. Commissioning of the gas plant and initial production is presently forecast to occur during the second quarter of 2008. Upon completion of this natural gas plant the Company will have a combined capacity throughput from its three operated facilities at Ansell/Sundance totalling approximately 33 mmcf per day (11.9 mmcf per day net). The Company is also expecting to continue its relationship with third party processors currently handling net production of approximately three mmcf per day.
In 2008 the Company will continue to pursue capital and operating cost efficiency measures including further evaluation of utilizing water as a replacement to oil for well fracture treatments and facilities and production optimization.