Petro-Reef Resources Ltd. reports that its recently drilled 11-12-56-27w4 Detrital sand oilwell is now on stream. The initial two weeks of production averaged 160 barrels of oil per day, with three percent water cut.
The Company operates and has a 94 percent working interest in the well. It is expected the well will meet its allowable of 125 barrels per day during the initial four month production test period, based on the initial performance and the historic performance of the other wells in the pool.
Petro-Reef is making preparations to drill the next well in the development program, expected to spud in September, at 15-12-56-27w4. Based on 3D seismic interpretation, at least three more additional delineation wells remain to be drilled on the pool. Petro-Reef has also commenced the preliminary work necessary to make an application for a waterflood program on the Detrital sand oilpool. The Company has working interests ranging from 79 to 94 percent on the lands covering the pool.