Start of production in April/Additional drilling already underway
Denver/Heidelberg. Deutsche Rohstoff AG (DRAG) has achieved a drilling success through its subsidiary company Tekton Energy in the U.S. State of Colorado. As part of the first drilling campaign, which the company had started in the Windsor/Wattenberg project north of Denver in early February, three vertical wells were drilled in different directions from the same well site (“Rancho pad”). All three wells were successful. The drilling rig is now moving to Tekton’s second well pad to begin three additional wells today(“Pavistma pad”).
Jerry Sommer, CEO of Tekton Energy, said: “This is a great success and a validation of our geological model. We will accelerate our drilling program at full speed. We can expect good results for the other wells due to the very well known geology of the Wattenberg field.”
Production from the first three wells will start in April. By mid-year, seven additional holes shall be drilled from different drill sites and brought to production. Vertical wells in the Wattenberg field usually produce around 50 barrel of oil equivalent as initial daily production.
The geological results of the drilling suggest that the strata encountered are also suitable for horizontal drilling. One of the largest producers in the Wattenberg field, Anardarko Petroleum, reported in November that an extensive horizontal drilling program was carried out in the last year which brought superior economic results. The initial daily production was far higher than for the vertical wells. The best published well produced approximately 1.200 barrels initially. Over the next few months Deutsche Rohstoff AG and Tekton Energy will therefore develop a concept on how this additional potential may be used to increase the value of their land.
Heidelberg, 23 February 2012