Silvermere Energy report the first sales of oil and gas from its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company LLC (Dominion).

Following the successful 24-hour flow test conducted on 15 October 2012 and the return to continuous operation from 30 October, clean-up of the well has continued alongside pressurisation of the flow line to the "Six Pigs" shore facility. Having achieved the necessary operating pressure to supply the transmission network, the first oil and gas sales were recorded on 1 December 2012. Following installation of a compressor and associated equipment at its shore facility, the I-1 well is due to be turned back on later today, from which time production is expected to flow continuously through the sales meters.

As previously reported, the flow-test conducted on 15 October 2012 showed flow rates of 155 bopd plus 700,000 scfpd of associated gas, and no water. With the well clean-up still on-going, the optimum commercial flow rates have still to be determined but encouraging operating pressures recorded in the well suggest that commercial production could match or exceed the levels obtained in the flow test.

Tags: Silvermere Energy