Rocksource to Boost Production with 2 More US Wells
Rocksource announced that the October 2008 production from its US subsidiaries averaged 2,113 boepd (barrels of oil equivalent per day). This compares to the September production of 2,290 boepd and 1,033 boepd in October 2007. The stated production numbers are based on metered daily production, and may thus differ slightly from the final production volumes that will be used for accounting purposes due to changes in stock volumes etc.
The new production wells in the ongoing new drilling campaign, described in further details below, are expected to bring total production back to above 2,500 boepd. Rocksource is now preparing the start-up of two exploration wells that will be drilled in late 2008 and beginning of 2009.
Given success in these two wells a field development will be undertaken to double reserves to 10 million boe and production to 5,000 boepd.
The first production well in the new campaign was drilled successfully, and logs indicate that the productive zones have been proven as prognosed. The well has now been cased and cemented and is currently being completed with tie-in to sales expected later in November.
The second new production well will is expected to spud within a few days and both this and a third new production well is expected to be drilled within end of 2008, for tie-in to sales in December 2008 and January 2009, respectively.
The first of the two exploration wells is expected to spud early December, and the well is expected to reach the target reservoir zones early in January 2009. The second exploration well will follow about one month later. The exploration wells are drilled on separate structures. Various options are being considered for early production from the wells in a success case in order to minimize the time required to tie the wells into sales.
The significant cash flow generated by Rocksource from current production in the US allows all the approved wells to be funded by internally generated cash flow, and would also fully fund the possible development following success in the exploration wells.