Neon Energy (ASX: NEN) has successfully completed drilling operations on the Lombardi 17-27H well at the North San Ardo oil field in California, with the well currently producing oil at a rate of 225 bopd.
Neon completed the Lombardi 17-27H well in the company’s North San Ardo oil field on March 21, 2010.
Neon’s Managing Director, Ken Charsinsky commented, “this successful development well endorses our decision to mitigate the natural decline in North San Ardo field production at a time when drilling is relatively inexpensive and oil prices are strengthening."
"The well came in as prognosed, and we expect payback of the investment in under three months at current rates and prices,” he added.
The well was drilled into the southern lobe of the prolific Lombardi oil sand reservoir, where two of the most productive wells in the field are located. Field production has doubled as a result of the new well and facility upgrades. North San Ardo production is now more than 500 bopd.
The well was successfully drilled horizontally to 3,775 feet (1,150 meters) into a thick section of the Lombardi reservoir, and encountered excellent oil shows throughout a 715 feet (218 meters) interval.
A slotted liner was placed over that section in order to produce oil from the entire interval.
The well is tied back to existing production facilities on the central pad and commenced production on March 24 2010. The company anticipates Lombardi 17-27H to be one of the better performing wells in the field.
Neon said the drilling result endorses the company's strategy to allocate capital to near term expansion activities.
http://www.proactiveinvestors.com.au/companies/news/6250/neon-energy-completes-drilling-at-north-san-ardo-oil-well-6250.html
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