FieldPoint Petroleum completes East Lusk well in US

FieldPoint Petroleum has announced the completion of East Lusk Federal 15 well #2, part of the Lusk Field in Lea County, New Mexico, US.

The well was drilled in the Bone Spring Formation by the company’s drilling partner Cimarex Energy.

FieldPoint Petroleum president and CEO Ray Reaves said oil production stood at a rate of 462 barrels of oil per day and 435 mcf of natural gas sales per day.

"These early results are slightly better than those from our well #1 on this lease, which was completed in December 2011," said Reaves.

"Without certainty, the company has reason to believe that the oil production could increase and with a gas sales line connected we will continue to sell all gas produced.

"Our shareholders are aware that this is our first participation in a horizontal drilling project. At this point, I would have to say that we are very glad that we did, and that we partnered with Cimarex."

The terms of the agreement with Cimarex Energy includes the drilling of two wells on the property.

Based on further results from the second well on the prospect, Cimarex is likely to drill a third well within section 15.

FieldPoint Petroleum said that it may also begin drilling in section 14.

The company owns a 43.75% working interest in the field while Cimarex owns a 37.5% working interest. Other partners own the remaining 18.75% working interest in the two wells.