HIGHLIGHTS: • Treatment of five Ridge Runner (RR) wells at Clear Creek with Methanol and/or Glycol has been completed. The two Alpine School District (ASD) 3‐17 and 6‐17 wells have also been treated with Glycol. • All five RR wells have resumed production operations and the two ASD wells are on production: all are currently in production from an initial low base level which is slowly being increased to prevent the further formation of hydrates. • Early indications from all wells are positive with no reformation of hydrates but caution needed as some follow up treatment may still be required. DETAILS: • RR 11‐17, 2‐19, 11‐20, 1‐30 and 13‐17 wells have all been treated and are being slowly brought back on to production. The RR 11‐17 was the first well treated and is the most advanced in terms of this production operation: to date no hydrate reformation has occurred which is very encouraging. The RR 13‐17 was the second well treated and although at an earlier stage of operation compared to the RR 11‐17 well, to date the operation to bring this well back on to production has not resulted in any hydrate reformation, also encouraging. The other three RR wells and the two ASD wells are in the early stage of this production operation and it whilst it would be premature to draw any firm conclusion, management is highly encouraged that to date these wells have also not encountered any new hydrate reformation. • The operations currently being undertaken involve a very gradual pumping down of the fluid levels of the wells to a point at which gas can freely enter the well in a controlled manner to prevent a severe pressure drop with resulting temperature drop, flowing into the gathering system and to allow expected gas rates to be achieved. It is not possible to say with any certainty how long this process will take to fully complete successfully but the best estimate at present from field 2 management and the company’s consultants is approximately 2 to 4 weeks. Further updates will be released as results become available.
MAE Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
