Terrace Energy expects to receive its first revenue in April from February production from the initial well, the STS 1-667H well, drilled and completed on the STS Olmos Project.
The well was first tested on February 10, 2012 and has produced approximately 28,000 barrels of oil through the end of March 2012. Permanent tie-in facilities were installed in late March. The well continues to outperform expectations and is currently flowing at a rate of approximately 520 BOPD (barrels of oil per day) and 0.5 MMCFD (million cubic feet per day) of liquid rich gas.
Proceeds, received by the operator, from the sale of oil and gas recovered to the end of March are approximately 30% of the estimated well costs. There can be no assurance that the flow rate will stabilize at current levels over time.