TomCo Re-Commences Production in Israel, Starts Fresh in Texas
TomCo announced the re-commencement of oil production at the Heletz Field in southern Israel, where TomCo acquired a 50% and a 25% interest in two licenses in April 2008.
The Heletz Field, with an estimated Original Oil In Place of over 50 million bbls, was discovered in the 1950's and produced around 17 million barrels of oil prior to production being shut-in in August 2007. TomCo and its operating partner believe that the field holds significant potential for additional infill drilling and secondary production, as well as having several high risk / high reward deeper exploration targets. The new operator, Avenue Energy Israel Ltd, has initiated a comprehensive technical re-evaluation of the field and has already identified a number of specific well work-overs and in-fill drilling targets. Planning is also underway for a new seismic data acquisition program.
Meanwhile, two existing wells (Heletz-1 and Heletz-25) have been re-opened for production over the past 7 days, and are currently producing around 34 bopd in aggregate (17 bopd net to TomCo). Oil production is from three separate Cretaceous sandstones of the Heletz Formation, at depths of 1,496m to 1,532m. Water cuts are around 40%, and there is little or no associated gas. Three further wells are currently being tested and prepared for production, and are expected to come on stream in the next few days.
TomCo is also announced the commencement of production at the BooneA#2 well, in Scurry County, Texas.
TomCo acquired a 2% working interest in this newly drilled well through the contribution of $20,000 in drilling costs. The well, drilled by operator Griffin Global Resources in the Cabello Draw Field, penetrated the expected Canyon Formation reservoir and flowed at rates of 60 - 80 bopd from perforations at 6,290 - 6,302ft. The well has since been equipped with a pump, and is producing at an average rate of 132 bopd, with virtually no associated water or gas. TomCo's net production share is around 2.5 bopd.
Howard Crosby, TomCo's CEO, said, "We are delighted that the first steps have been taken in re-establishing production at Heletz, and we look forward to the future re-vitalisation of this field through the application of modern technology and enhanced recovery techniques. We are also pleased with the outcome of our small investment in Texas, which forms part of our strategy to build non-operated production in established oil plays in the US."
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