Canadian Overseas Petroleum Limited and its affiliates ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona counties, Wyoming, USA, announces a project construction update for the gas gathering system ("GGS") at its Barron Flats Shannon (Miscible) oil production Unit ("BFSU").
GGS installation progress:
· Right-of-way access for the installation of the GGS was cleared and crews mobilized to site in late April.
· All 8" pipe has been delivered to site and strung alongside the right of way.
· Welding of pipe commenced on May 10th and is continuing, with 2,352 ft of 8" pipe laid and welded to date.
· Construction is scheduled to take two to three months and Phase 1a is budgeted at up to $4.5 million, funded by proceeds of COPL's recent convertible bond financing. The wellsite facility upgrades in the scope of work include installing high-pressure separators and high-pressure fire tubes for each separator.
· The project consists of five miles of high-pressure steel pipe routed through the core area of the field. Phase 1a will connect seven batteries, servicing nine wells of the 34 producing wells, which will be tied into the high-pressure system. The current, low-pressure gas gathering system will continue to service the remaining BFSU wells. The system is designed to optimally capture additional wells with increased pressures as the field miscible flood matures.
· COPL has also initiated well conversion programs to convert certain high productivity oil producing wells at BFSU to flowing-pumping configurations, in tandem with the GGS installation.
Arthur Millholland, President & CEO commented:
"The GGS Phase 1a project is designed to connect our top producing wells in the Shannon (Miscible) flood and other wells proximate to the main GGS trunkline, alleviating pressure related issues, reducing flaring requirements and allowing our facilities to return produced gas back to the BFSU gas plant. We are pleased with the progress to date which is on time and on budget."