Sefton Resources says three new Tapia wells are now in production
Sefton Resources (LON:SER) said three new wells on the Tapia Field, in California, are now in production with rates improving and expected to stabilise in the next month.
The news was part of a wider update on the company's operations, which are focused on the golden state and Kansas.
The group said a workover programme on certain Tapia wells, together with a process called cyclical steaming, should provide a further increase in production.
At the same time the company's Kansas pipeline project remains on track for completion with first gas expected by mid-2012.
Chairman Jim Ellerton said: "We are now seeing an increase in the oil production at Tapia following the drilling of the three new wells and we expect these increased flow levels will stabilise over the coming weeks ahead of a further increase in production as the workover programme of certain wells is completed and we recommence cyclic steaming.
"In Kansas, 2012 will be the year that we begin to really benefit from the pipeline infrastructure we have acquired and are making operational from which we expect to start generating cash flow by mid-year 2012."
Separately, an updated competent persons report is expected to be published at some point in the first quarter.
Proved and probable reserves have already been estimated by independent consultant Reed W Ferrill & Associates.
"We now have in place a solid base of assets which will generate long term and highly visible earnings from both California and Kansas and will position us very well to achieve continued organic growth and to accelerate this through selected further acquisitions," Ellerton said.
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