7th Aug 2014 10:10
LONDON (Alliance News) - Northern Petroleum PLC Thursday said the first of three new wells at its Virgo redevelopment project in Alberta, Canada will be spud this week, with expectations that all wells on the site will be drilled and completed by the end of October.
The firm said production in July from Virgo averaged 165 barrels of oil per day from the 13-33 and 16-19 wells. A third well on the site, 14-22, is expected to be brought back into production at a restricted 50 barrels of oil per day following gas tie-in work. Northern said the sales price achieved after the pipeline tariff was approximately USD90 per barrel.
"Our second drilling campaign in Canada this year will build on the success of our initial programme conducted in the spring. The priority of these three wells is to continue to build production and reinforce the attractive economic and development assumptions of the Virgo redevelopment," said Northern Chief Executive Keith Bush.
"Upon success, the field will deliver material oil production and cashflow for the business by the fourth quarter of this year, in-line with the company's production led growth strategy."
Northern also said the consideration for the USD2.5 million acquisition of its UK assets by UK Oil & Gas Investments PLC will be entirely in cash.
Northern shares were up 3.1% to 21.00 pence late Thursday morning, while UK Oil & Gas Investments shares were down 2.6% to 0.94 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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