Quarterly Activities Report
Construction of the drill pad and access road was completed in August. The infrastructure required for the drilling to commence was put in place through the quarter. During the quarter, work was carried out to finalise supply contracts for various equipment and services that will be required through the drilling phase. The Master Service Agreement was completed and insurances put in place.
Capstar Drilling was confirmed as the preferred contractor to drill the Govt Kaehne #9-29 well. The #312 rig which has an experience crew has been active throughout the summer and is completing a drilling campaign for a large Powder River Basin E&P Company before mobilising to the 9-29 location.
Subsequent to the end of the quarter, the conductor was set. This is a 60 feet length of steel pipe that is cemented in place and is the first phase of spudding the well.
BORIE OILFIELD, DJ BASIN, WYOMING
One workover was carried out to maintain oil production at the Borie Field. Seasonal storms caused damage to surface equipment and electric infrastructure which impacted production at the end of the quarter.
Average gross production of ~55 bopd in Q3-19 was in line with previous quarters. A review was carried out on the potential recovery of oil and gas from the Niobrara Formation which is present within the field and prolific in nearby fields in the DJ Basin. This work is ongoing.
SILVERTIP FIELD, BIGHORN BASIN, WYOMING
Gas production at the Silvertip Field has decreased in 2019 compared to the prior year, partly due to natural pressure decline and also due to flows being choked back as a result of low gas prices. Seasonal increase in demand for gas over the winter months is likely to increase prices.
Various routine maintenance tasks were carried out on wells and the gas plant during the quarter to maintain production.
SHEEP SPRINGS AND ROUND MOUNTAIN OILFIELDS, CALIFORNIA
Production from the Sheep Springs Field decreased in the last quarter. Repairs have been carried out on affected wells and there is expected to be recovery of the lost production. The field operating costs continue to be low for these fields making them profitable even at lower production rates.
The oil produced from the California Fields continues to attract a price premium over the average West Texas Intermediate (WTI).
The Company released an update for its reserves for all of the producing fields and for its Powder River Basin prospect. The drilling and completion of a successful well at the Govt Kaehne #9-29 location will move the reserves in the Proved-undeveloped (PUD) category to Proved-developed-producing (PDP).
Identification of additional prospects within the currently held PRB acreage or new leases will further increase the PUD reserves over time.
*To view production figures, tables and figures, please visit:
About EON NRG Ltd
EON NRG Ltd (ASX:E2E) is an USA onshore focused energy exploration and production company. The Company's growth path is through drilling of high impact oil exploration wells, supported by its 100% owned and operated long life oil and gas production assets and associated cashflow. The company also has a battery minerals division with prospective leases in Nevada which are at the early stages of low-cost exploration.
EON NRG Ltd