Joann #1 Well On Production: Status Report
Burleson Energy (ASX: BUR) is pleased to advise that following the successful connection of the Joann #1 well to the sales network on 4 April 2011, the well has been producing hydrocarbons at an average of 1.578 million cubic feet (mmcf) of gas per day and 79 barrels of condensate per day through a 13/64 inch choke.
The well has demonstrated strong and stable well head pressures during this period. Operator AKG Energy advises that to properly monitor gas:condensate and hydrocarbon:water ratios, the choke will be opened cautiously until a production level of ~2 mmcf of gas per day is achieved.
The initial production rates illustrate a higher condensate ratio than experienced during flow testing last year and provide a healthy boost to the indicative economics of the Joann #1 well. Based on these initial rates and current commodity prices (gas ~ $4.00/mcf and oil ~ $110/bbl) Burleson’s net share of revenue from the Joann #1 well alone is approximately $145,000 per month.
Burleson has a 39.4% Working Interest and 30.8% Net Revenue Interest in the Joann #1 well.
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