Ivory Energy: Saskatchewan Production Decreases Due to Shut-Ins
Ivory Energy Inc. announced that February net average sales production was approximately 675 boe/d less than January net average sales of 705 boe/d. This oil production decrease was due to oil wells being shut-in or produced at restricted production levels temporarily because of water disposal constrictions. Ivory is currently installing a pipeline network and water handling facility that will allow the Company to resume production on these shut-in wells.
As mentioned above, Ivory's pipeline installation for the Silverdale water flood expansion project is on-going and will be completed in March at which time the associated oil wells will be optimized and pressure maintenance of the pool will begin. This operation will result in increased oil production, solution gas gathering and sales, and reduced operating cost by eliminating trucking for this area. This will add significantly higher netbacks and increased cash flow.
Further to our November 30, 2007 news release, Ivory participated in an exploration well in west central Alberta as part of Ivory's flow-through commitment. This well reached total depth during January and has been cased as a potential gas well. Ivory is participating in the completion of this gas well which is currently being tested. Ivory has an after payout interest of 20% in this well and has also earned various rights in three adjacent sections of land.