Sefton Resources plans new wells to increase production at Tapia Canyon
Sefton Resources (LON:SER) today told investors that it will start drilling work at the Tapia Canyon oil field in California later this month.
Drilling will begin on the first of four wells in mid-November, it said. All four wells will be completed over a five week period.
The company expects the new wells will be in production in early 2012. Sefton reckons this will allow oil production to rise as much as 75 per cent to around 240 barrels of oil per day.
"The drilling of these four wells is very much part of the plan to increase production and revenues from Tapia," said chairman Jim Ellerton.
"This is in advance of us receiving the completed report (on the steam pilot programme) from Dr Farouq Ali which will give us a very strong indication of how we can further develop the field."
Sefton said that the Tapia and Eureka fields produced around 129 barrels of oil a day in October.
Sefton received US$107 a barrel for the produced oil which had an average API of 18°. This price was a 24.4 per cent premium to the price of oil on NYMEX (New York Mercantile Exchange), it said.
Ellerton added: "It's also interesting to note that we are not alone in being confident about this area and its potential as a neighbouring operator, Vintage Production, a subsidiary of Occidental, has recently moved a rig on location to drill a third well at their Wayside Canyon oil field which is immediately adjacent to Sefton's Tapia Canyon field."
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
