Elixir Petroleum Limited announces that the operator of the Pompano Project has contracted a drilling rig to drill the third development well at Pompano.
It is expected the rig will be mobilised to site by late July 2008. The operator is in the process of finalising the well programme and the procurement of drilling materials, after which a complete well proposal will be forwarded to partners for consideration and approval.
The Pompano Project is located in shallow waters offshore Texas in the Gulf of Mexico and is currently producing approximately 15 MMscf of gas per day and 50 barrels of condensate from two development wells which are tied back to a production platform.
Commenting on the announcement, Elixir’s Managing Director, Andrew Ross said:
“We are looking forward to receiving the well proposal from the operator and to the commencement of the second phase of drilling activities at Pompano in July.
“Based on our current production rates from our US operations, and recent gas prices in the US, we anticipate our net revenues for May and June will exceed US$2.75 million in total, setting a new record for Elixir. Continued high gas prices and growing production would see Elixir generate strong cashflow from the US over the next twelve months.”
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