• 2nd new CERF well successfully fractured – IP over 400 BOPD
• Provides further support for Activa’s Four Counties prospect
• Payout for Activa on the 2 new wells expected within 3 months
• Activa increasingly geared to higher oil prices
• 80 % drilling success rate in 2007
Activa Resources AG has successfully fractured its 2nd new well on its CERF lease in Navarro County, Texas. The Cerf No. 2 well was completed with a fracture stimulation on November, 16, 2007. On a 24 hour test, the well flowed 429 Barrels of Oil, 324 Barrels of Treatment Water, and 243 MCF per day. This initial production is the highest rate obtained in the field to date and follows the previously announced successful fracturing of the Cerf No. 5 well. Between November 16th and 20th the 2 new wells averaged 270 BOEPD. Cumulative production from the No. 5 well (6 weeks production to date) and the new No.2 well (1 week production) reached 3,257 BO and 3.3 MMCFG. This does not include approximately 60 BOE from previously drilled wells on Activa’s CERF lease.
Activa Resources owns a 45% Working interest and a 33.75% Net Revenue Interest in both the Cerf No.2 and Cerf No.5. Activa’s share of approximately USD 800,000 total completion costs for the two wells is expected to pay within 3 months. Activa estimates the wells to contain 45,000 barrels of recoverable oil each and plans to drill up to 10 additional locations in the Cerf Prospect area.
The CERF lease is a key starting point for Activa’s Four Counties exploration play in Navarro, Limestone, Henderson and Freestone Counties in the North-East of Texas. The Four Counties play represents a 1 to 2 million barrel opportunity net to Activa. It is a technology-driven oil field play in which Activa is the largest working interest holder with interests varying from 40 % to 70 %. Activa is also driving the geological work and operating the project. Activa’s overriding aim it to produce reserves along the Mexia fault trend in an area that has produced substantial amounts of oil over the last 100 years. The main analog is the famous Van Field in nearby Van Zandt County.
Activa’s CEO Leigh A. Hooper: “This latest drilling result at CERF will grow Activa’s production of oil significantly and allow us to benefit from the current pricing environment.
The CERF results, combined with our successes this year in our Adams Ranch, Hidalgo Frio and OSR projects, illustrate Activa’s strong position in the US onshore drilling arena. 2007 has become Activa’s most successful year to date with an overall drilling and well completion success rate of 80 %.”
Hooper adds: “With the fresh capital that we recently raised we are in a strong position to continue developing our asset base. This will allow us to generate strong production growth in 2008.”
Advanced Geophysics
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