3rd Apr 2014 10:01
LONDON (Alliance News) - Northern Petroleum PLC said Thursday that it had successfully completed its proof of concept drilling programme at the Keg River formation in Alberta, and all three of the wells drilled encountered economically recoverable light oil.
All three are being put on a long-term production test, the company said.
Following the results, the company said its field redevelopment plans are being optimised, and further drilling its expected in the second half of 2014.
Under the programme Northern drilled three wells, re-entering an old production well and drilling two new wells. At the 're-entry well' the company saw excellent results, it said, as the formation produced dry oil at around 150 barrels of oil per day.
At the first new well, which was drilled from an existing well pad, called 'the deviated well', drilling logged a 15 metre gross oil column. At the second, 'the new drill well', a 22 metre gross oil column was logged, and initial internal estimates suggest that the reef contains between 330,000 to 530,000 of stock tank oil originally in place.
Northern said that the second well was the first new reef drilled in the area for five years.
The company said that the results from the re-entry well support the possibility of re-entering other wells across its acreage.
"Canada represents the first step towards the realisation of our strategy of production led growth and it has the potential to be a material source of production, cash flow and value creation to the business," said Chief Executive Keith Bush in a statement.
Northern will provide a further update on its strategy when it releases its financial results later in April.
Shares in Northern were trading up 8.0% at 24.04 pence Thursday morning.
Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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