- Activa Resources AG targets further three-fold increase in 2008 oil and gas production
• Activa records increase in 2007 production from 95 BOED to 300 BOED and targets further three-fold increase in 2008
• 2008 kicks off with drilling successes at Hidalgo Frio and Adams Ranch and restarts Barnett Shale drilling program
• At today’s prices Activa’s current production indicates minimum 2008 production revenues of USD 7 million after USD 4 million in 2007
Activa Resources AG announces that it recorded a three-fold production increase from 95 BOED to 300 BOED in 2007. Currently 45% of Activa's production is oil, with the remainder being natural gas. Activa is targeting daily production of 1,000 BOED by the end of 2008.
Activa CEO Leigh A. Hooper explains: “This goal is based on our existing low to medium risk projects and does not include potential production from our unconventional gas and high-risk plays which will also see drilling activity in 2008.”
The most important high-impact elements of our 2008 drilling programme in the 1,000 BOEPD estimate are from our Hidalgo Frio, Loma Field and OSR Halliday Field projects in Texas and the Gray Waterflood prospect in Louisiana. The Fayetteville Shale play is also expected to contribute to production when activity is proposed by the project operator.
CEO Leigh A. Hooper puts 2007 in perspective: “We had a successful 2007, primarily focused on expanding our operations base, finalizing the technical review of several key projects and focusing on low risk exploitation opportunities. As a result, in 2008 Activa will be able to increase production volumes from these projects. In addition, Activa’s higher risk/high return exploration opportunities will play an increasingly important role in our 2008 efforts, which we believe will fuel significant growth for 2009 and beyond. Based on our current production alone, we are looking to generate USD 7 million in production revenues in 2008. As soon as we realise our aim of 1,000 BOED Activa will be able to generate annualised revenues exceeding USD 20 million. This clearly assumes further successful execution of drilling programs as well as market prices remaining at 2007 levels with oil above USD 65 per BO and natural gas above USD 6 per MCF."
Current Drilling and Production News
In January we will have the full benefit of the production increase at our third Hidalgo Frio well (SWGU No. 37) which was carried out at the end of 2007. The fourth Hidalgo Frio well (SWGU. No. 38) has been drilled to a total depth of 11,000 feet (as at Jan. 9th) and logged. The logs indicate reserves of natural gas in several formations. Production tests are set to commence during the first quarter. Three additional wells are likely to be drilled thereafter.
CEO Hooper: “On January 6 we spudded the third well on our Barnett Shale lease in Jack County, Texas. The Voyles-Gregg # 1 is being drilled to a depth of 5,714 feet to test the Barnettt Shale. Work plans for the initial 2 wells are currently under evaluation and we hope to commence production from the Marble Falls formation during the first half of the year.”
At Adams Ranch we have recently doubled the total leasehold to over 2,000 acres. In December 2007 we re-equipped several oil wells which, as expected, confirmed the presence of oil on our leases. The newly drilled Fasseler # 9 was drilled in to a depth of 1,900 feet and 5 potential hydrocarbon bearing formations are being evaluated. Whole core samples were taken with the results from Core Labs expected in 6 weeks. We expect to materially increase production of both oil and natural gas on the Adams Ranch property during the course of the year.
Activa has commenced oil production from the 2 newly drilled Double 7 wells. CEO Hooper explains:
“Pipe has been set on both wells and the first well, the Foster #14 is currently flowing approximately 70 BOPD on a restricted choke from a lower interval. The second well will be completed this week. The stimulation conducted at our Mongoose prospect has not produced the expected results. A plunger lift system is currently being installed to allow sustained production which should provide a reasonable return on the investment.