Petro-Reef Resources has successfully tested a new follow-up oil development well in its core area of Alexander in Alberta, Canada.
The new follow-up oil development well tested at initial production rates around 400boe per day including an estimated 300bpd of crude oil.
Petro-Reef anticipates the new follow-up well will be brought onstream before the year end because the well is located about 500m from Petro-Reef's 100% owned and operated sour oil and gas processing facility.
With the addition in output from the new well and another existing oil well awaiting tie-in, production is expected to increase to about 1,200-1,250boe per day by January 2011, including an estimated 350bpd of crude oil.
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