Nitro Petroleum Inc. has completed the Giant 1-21. This well has had several delays due to the downhole problems with Barium which seal off the perforations in 5 1/2 casing and doesn't allow oil, gas, and water to flow into casing where it can be pumped out. National Petrochem has hopefully resolved our problems. The well has pumped for 30 days without any problems.
For the month of September we have shipped a total of 540 barrels of oil with another 100 barrels in the stock tank, for a total of 640 barrels times $104.00 per barrel with sales of 66,560.00. The gas we estimate to be around 75,000 cf per day. We should start improving each day now that we have hopefully taken care of our Barium problems.
We believe this well is capable of producing 40 plus barrels of oil per day and 150 mcf gas per day once we have resolved the Barium problem. The well is currently producing 22 to 24 barrels of oil per day and 75 mcf gas per day. We are still in negotiations with the gas purchaser. We hope to finalize the gas contract for the Giant 1-21 after we complete drilling of the Giant 2-21.