New Western Energy Corp. (NWTR), an independent energy company engaged in the acquisition, exploration, development and production of oil, gas and minerals primarily in North America, announced that its wholly-owned subsidiary, Royal Texan Energy Co. has commenced a comprehensive work-over program on Well #1 on its Sam Cannon Well Unit located on the 680-acre Moran Lease in Shackelford County, Texas.
The Sam Cannon Well Unit is comprised of two (2) wells, namely #1 and #4, and has produced 146,607 barrels of oil and 4,851,295 MCF of natural gas from August 1966 to February 1997. Historically, the Sam Cannon Well Unit has been a major oil producer with daily initial production (IP) of 196 BOPD. Well #1 has produced approximately 79,820 barrels of oil to date. According to an independent Geologist Report conducted in August 2012 (the “Geologist Report”), the recoverable reserve from Sam Cannon Well Unit is expected to be around 36,943 bbls of oil and 1,189,755 MCF of natural gas.
The work-over program for Well #1 is initially focused on the development of the Mississippian production zone at a depth of 3,902 ft. It has been observed that there is a packer with a joint of tubing that has been split in half at a depth of approximately 2,500 ft. We plan to use a molding tool to mold the split tubing into a shape that the fishing tool can attach on to and pull the packer and tubing out of the hole. This will open up the well bore and will allow us to run tubing, rods, down hole pump, and start producing from this well.
There are currently eight (8) lease units (including Sam Cannon Well Unit) under the Moran Lease, which the Company acquired in January, 2012 as part of its acquisition of Royal Texan Energy Co. According to the Geologist Report, the Moran Lease has combined recoverable reserves of 183,837 bbls of oil and 3,791,294 MCF of natural gas.
“The initial goal of this work-over program is to focus drilling in the proven Mississippian production zone in order to enhance the recovery factor of this oil field,” said Javan Khazali, President of New Western Energy Corp. “As we continue to move forward with the redevelopment program, we anticipate productivity equivalent to that of past development, and a 15%-30% increase in recovery efficiency.”
About New Western Energy Corp.
New Western Energy Corp. is an independent energy company engaged in the acquisition, exploration development and production of oil, gas and minerals primarily in North America.