NiMin Energy Corp. reported continued success and production growth in Wyoming, and commercial progress in California.
• NiMin's Wyoming production has doubled in 2010 from 320 barrels of oil per day ("bopd") to over 650 bopd.
• The Company expects to complete ten additional operations in Wyoming before year-end to further increase production, including new drilling, fracture stimulation, polymer treatments and recompletions.
• The Company is proceeding with the next phase of development at the Pleito Creek Field in California in order to increase production and reduce operating costs.
• NiMin's current production is in excess of 1,000 bopd, a greater than 40% increase in production since the beginning of the year.
Wyoming
Through drilling activity at the Ferguson Ranch Field and workover activity at the Willow Draw Field, the Company has increased oil production from 320 bopd at the beginning of 2010 to over 650 bopd currently. This increase is a result of drilling and completing four new wells and one polymer treatment. For the remainder of the year, plans include the drilling of four additional wells, completion of two recently drilled wells, two polymer treatments and reactivation of two shut-in wells.
California
At the Pleito Creek Field, the Company's proprietary Combined Miscible Drive ("CMD") process continues to deliver month over month production growth. Current production is 260 bopd or 100 bopd above the natural decline of the field. Based on these results, NiMin plans to move from the initial phase to commercial implementation of the CMD process at the Pleito Creek Field. The next phase will include installation of permanent onsite oxygen generation, reactivation of shut-in wells and new drilling. These activities will take place in 2011 and are expected to both increase production and reduce operating expenses.
"Our operating results in Wyoming have delivered significant production growth, and our inventory of planned activities is expected to continue adding new production," said Clancy Cottman, Chairman and CEO. Mr. Cottman continued, "Based on the technical and commercial results of our CMD process at the Pleito Creek Field, we are planning further development that will increase production and reduce operating costs."
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