http://www.proactiveinvestors.com.au/companies/news/25822/molopo-energy-steps-on-wolfcamp-oil-throttle-plans-more-wells-for-additional-production--25822.html
Molopo Energy steps on Wolfcamp oil throttle, plans more wells for additional production
Wednesday, February 29, 2012 by Bevis Yeo
Molopo Energy (ASX:MPO) has confirmed the viability of oil production from the Wolfcamp formation in the Fiesta project, Texas, and is planning to drill more wells later this year.
Production from the first three wells at Fiesta currently totals about 315 barrels of oil equivalent (boe) per day.
Future wells at the 77square kilometres (19,000 acre) project are expected to produce at rates of up to 550 boe per day due to the use of longer laterals and a change from gelled fracture stimulation systems to slick water fraccing systems.
Molopo’s first wells were short horizontals with average laterals of about 1524 metres compared to the average laterals of 2286 metres to 3048 metres drilled by other companies in the region while the change from gelled to slick water systems has resulted in both cost savings and increased production at other wells.
Other companies operating in the Wolfcamp include El Paso Corporation (NYSE: EP) Otis Energy (ASX: OTE) in New Mexico and Golden Gate Petroleum (ASX: GGP).
Molopo has a 78.2% working interest in Fiesta though this may drop to 62.4% after payout.
Over in Saskatchewan, Canada, Molopo has intersected encouraging oil and gas shows in the Midale and Alida Intervals despite encountering less Bakken shale than expected in the Estevan 9-22 well.
Other companies have discovered more than 480 million barrels of oil in the Midvale within 20 kilometres of Molopo’s assets.
Molopo said it was now re-evaluating the geophysical model developed for the area and may start an economic horizontal play across the Estevan acreage if production tests for either the Midale or Alida intervals are in the 30-100 barrel per day range.
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