12th May 2014 11:36
LONDON (Alliance News) - Northern Petroleum PLC Monday said positive drilling and production results at its three wells in north west Alberta in Canada support the belief that the redevelopment of the Keg River play will become a material source of production, cashflow and value to the business.
Last month, the oil and gas exploration company said the three wells were successfully drilled and completed as planned, with operations moving to a production testing phase.
In a statement Monday, Northern Petroleum said the wells 13-33 and 14-22, are currently producing at a combined test rate of 280 barrels of oil per day, while the new drill well 16-19 initially produced as expected. The company said a cemented liner will be run in well 16-19, and the oil zone will be perforated to ensure isolation of the water leg during production, which means the well will remain shut in until then.
It said that production is being trucked and sold locally at a sales price of approximately CAD96 per barrel.
The company said it is now planning the immediate and long-term development of the play.
"An initial review for the next drilling phase has produced nine well locations, which are currently being licensed, all of which are new wells drilled into previously produced reefs to target the production of unswept oil at the reef edge," the company said in a statement.
It said that three new wells are planned to be drilled during the summer, starting in August, and the pipeline connections of the resulting six wells are scheduled to be undertaken during the winter period, starting in December.
Northern Petroleum shares were trading 4.5% higher midday Monday at 26.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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