Operations Update: Cumulative Daily Production Increases to 1 Million cubic feet of gas per day
Highlights
- Increase in production is in line with expectations
- Fluid levels in wells continue to decrease as required to achieve maximum production levels
- Further significant increases in production anticipated as workover operations progress
Marion Energy Limited (ASX: MAE, MAEO, MAEOA) advises that cumulative daily production from its Utah and Oklahoma based projects has now achieved its first milestone target rate of 1 million cubic feet of gas per day. As is evidenced by the table below, production rates are steadily increasing as workover operations progress. There are now six Clear Creek wells (including the RR 11-17 well which has only just commenced workover operations) currently undergoing workover operations and rates above the current level are being measured periodically on a non stabilized basis.
The increase in production is in line with expectations. Management continues to be very encouraged by the results from operations to date. It is expected that the current production rate will increase significantly as pumping operations continue to reduce the fluid levels in the wells even allowing for some periodical, short term interruptions to operations that will occur for technical/operational reasons. Fluid levels are being reduced down to a target level of approximately 200 feet above the pump, which is also the target point for achieving optimum production conditions.
The Company has also just commenced workover operations on the Ridge Runner 11-17 well. Management considers this well to be potentially the most significant producer of all of its Clear Creek wells. It is anticipated this well will add significantly to the current, daily production rates over the coming months.
Marion also plans to commence workover operations on the Ridge Runner 2-19 well in the near future. This will bring the number of wells undergoing workover operations to seven. These seven wells will be the focus of operations for the June Quarter. Management is targeting a daily production level of 5 million cubic feet of gas by the end of the June Quarter and believes this to be a realistic target given progress to date.
The Company has a 100% working interest in the Clear Creek project.
Further updates will be provided as workover operations continue to progress.
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