Quest Petroleum (ASX: QPN) will benefit from oil production from the Jumonville #2 well at the Bullseye Prospect in Iberville Parish, Louisiana.
Quest Petroleum recently acquired a 5% working interest (paying 6.667%) in the Bullseye prospect (an area of 1,700 acres) located in South Louisiana.
the main target interval at Jumonville #2, the Miogyp sandstone, was perforated and has begun producing oil and gas at an initial rate of 750 barrels of oil per day and 250,000 cubic feet of gas.
Initial production rates are at the upper end of expectations.
The Jumonville #2 well has been brought into immediate commercial production with sales already being recorded and providing an immediate and substantial increase to cash flow. Jumonville oil is high quality 40 gravity oil which under the current sales contract yields a $2 per barrel premium to West Texas Intermediate (WTI).
At the initial Jumonville #2 production rate, Quest says oil sales from the Bullseye prospect will treble and gas sales will double. The permanent production facilities and infrastructure to support the increased production are already in place. All of the objective formations were penetrated and the Jumonville #2 well has delivered an excellent commercial result in its prime objective.
The Jumonville #2 well still has another oil zone yet to be tested in the Camerina section which providing investors with further upside across the Bullseye prospect.
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