Well this is fantastic, finally some positive production news without any glitches, investigations, hiccups, investigations, blockages, investigations. Shame we sold out but, good news for Lightning oil Company, Terrace and partners who could see the potential !
Warning ! This report contains positive words and phrases which have come to fruition such as,
A) excellent progress,
B) pressures with no significant decline,
C) "The Company is extremely pleased with the excellent results that have been achieved on all of its projects during 2013
D) The Company is well positioned to move into significant development on all of our projects in early 2014.
Seriously, I believe this is still in the predominantly gas area of the EF so I would presume the consistent oil production for 2 months with 136bbls oil/day is a pretty good result for the shortish lateral length ? Happy for someone to clarify as the EF is not really my thing. Looking good for the follow up wells at this stage.
Cutlass
The Company and its partners have also made excellent progress on its 2013 evaluation program on its 3,395 acre Eagle Ford Shale Development Project in Dimmit and LaSalle Counties, Texas. The Company has completed its initial discovery well, The Cutlass West A-1 which was drilled during the 2012 drilling season. The 4,400 foot lateral horizontal section was completed using multi-stage hydraulic fracturing and placed on production in late April. The operator is using a controlled flowback technique designed to minimize reservoir energy depletion and maximize long term recoveries. The well has averaged over 200 BOEPD with flowing pressures of approximately 2,000 psig for two months with no significant decline. To date, the well has produced over 8,200 barrels of oil. During this initial testing, the operator has completed the remaining major marketing infrastructure and initiated oil sales in early June with first gas sales in early July.
Drilling has been completed on the two remaining obligation wells required to secure the leasehold position. The Cutlass East B-2 well was drilled to a total measured depth of 15,000 feet including approximately 5,700 feet of horizontal lateral in the Lower Eagle Ford Shale. The Cutlass West B-2 well was also drilled to a total measured depth of 13,920 feet including approximately 4,900 feet of horizontal lateral in the Lower Eagle Ford Shale. Both wells were cased to total depth with 5 1/2" casing. Construction has been completed on two frac ponds in preparation for completing both wells via multi-stage fracture stimulation beginning in late Q3.
Dave Gibbs, the Company's President, stated, "The Company is extremely pleased with the excellent results that have been achieved on all of its projects during 2013. We have significantly expanded the early success on our very exciting STS Olmos Project with five new wells, established production from the Eagle Ford Shale on both our Maverick County and Cutlass Projects and validated significant hydrocarbon potential in the Pearsall Shale and Buda Limestone. The Company is well positioned to move into significant development on all of our projects in early 2014. We envision several hundred drilling locations will ultimately become viable in the currently identified formations as we continue to move these projects forward. Results to date also indicate the likelihood of additional formations to be developed as these project progress."
I knew as soon as Steve announced this project participation in the Eagle Ford it was going to be a winner and a very smart move by Steve. I knew it would be good for the company and I still stand by that ! Brilliant decision to buy in !
