Canadian Overseas Petroleum Limited ("COPL") (CSE) & (LSE), an international oil and gas exploration, production and development company with operations focused in Wyoming, USA, is pleased to provide an update on its affiliate, Southwestern Production Corporation's (Southwestern") application to flare additional gas volumes at its Barron Flats Shannon Unit ("BFSU") located in Converse County Wyoming.
Southwestern has made an application (the "Application") to the Wyoming Oil and Gas Conservation Commission ("WOGCC") to temporarily flare additional gas at its operated BFSU miscible flood project. The WOGGC Hearing on the Application (the "Hearing") was scheduled for September 13, 2022. Southwestern has requested a continuance to the scheduled Hearing Docket in October in response to an objection to the Application filed shortly before the scheduled September Hearing. The objector is known to the Company as they hold a 0.1% working interest in the BFSU as well as ownership of the surface rights. It is Southwestern's preference to have an uncontested Hearing. As such, it is in discussions with the objector regarding their concerns and conditions to withdraw the objection, which the Company feels the majority of these can reasonably be met.
COPL has previously disclosed the BFSU miscible flood is performing beyond its expectations, which is also outlined in the Application. The issues facing the Company are unexpected very high pressures on certain producing wells. These high pressures have caused safety issues during work overs, at well site production facilities and with the current gas gathering system in addition to restricting oil production. Temporary gas flaring at some or all of these wells will mitigate these issues until a field wide solution is engineered and implemented. Gas production from one of these wells has recently been tied directly into the gas plant to reduce the load on the gas gathering system. Two additional wells will also be tied directly into the gas plant after recent receipt of direct right of way consent from the objector. Once completed these actions will mitigate the high-pressure effects on three of the current 5 wells with the issue, and current flared gas volumes will also be reduced.
As the miscible bank continues to move across the field, certain wells will respond as simulated but some are more than likely to respond similarly to the current wells causing the issues at hand. Thus, the Company requires flexibility to operate with safety being paramount under ongoing "Good Oilfield Practices".
Arthur Millholland, President & CEO, commented:
"While the delay in the Hearing is unfortunate, the Company's Application is based on extensive and sound engineering which we look forward to presenting to the WOGCC in October. Flaring gas is something we do not do lightly as we own the enriched gas flared as it was purchased for the miscible flood. In addition, we are seeing positive responses to our wax treatment program in the field and I look forward to updating the market with results once we see some stability. We also continue to be focused on our 2022 objectives as laid out earlier this year."