Rocksource says that the March 2009 production from its US subsidiaries averaged 1,638 boepd (barrels of oil equivalent per day). This compares to the February 2009 production of 1,768 boepd and 2,267 boepd in March 2008. The stated production numbers are based on metered daily production and may thus differ slightly from the final production volumes that will be used for accounting purposes, due to changes in stock volumes etc.

The production average for the first quarter of 2009 has been 1,711 boepd which compares to the communicated target of 1,700 boepd for 2008. This target does not include production from any acquisitions or the development of new fields.

The final development well in the 2008 drilling campaign was completed for testing in the deepest potential zone during March, but flowed only water. That zone has now been isolated and the well will be completed in the shallower zone which was the main target. Production from this zone is expected in the first half of April.

The Granbury exploration wells have been drilled on new structures, north of the Drews Landing Field. Granbury #2 is currently being production tested. The well has flowed approximately 75 barrels oil equivalent per day without stimulation. While these preliminary results are encouraging, an extensive review of the entire development area is required as several additional wells will be required for the development of facilities to be commercially viable at the current low gas prices. Further production testing and evaluation of development options will be carried out over the next months.

In addition to work on the Granbury discoveries, Rocksource is reviewing growth opportunities to secure further production increase. The target of increasing production to 5,000 boepd by 2010 remains, but may be changed if prices do not improve.

Tags: Rocksource ASA