Cardiff Energy (TSX: V.CRS, Stock Forum) put its production plans into motion at the Bearcat #4 well located in Ballinger, Texas, when the company announced that it had been informed by operator, Martin Energy, of results on the well's initial production rates.
According to the news release, Martin Energy reported that Bearcat #4 had an initial production of 180 barrels of oil per day and 250,000 cubic feet of gas.
The company expected to test two additional formations in the well, the Middle Caps and Dog Bend Lime, at a future date and reported that most of the gas was tested from the Gardiner Lime formation.
Logs have shown that oil is also present in the Gardiner Lime formation and it is believed that this zone may have been contaminated during the drilling and cementing phase. Both companies are in the process of evaluating the timing and impact of a horizontal radial drilling test on the formation penetrating any contamination to bring on-steam the oil which is believed to be trapped.
Company President, Jack Bal, commented on the progress, “We are very encouraged by the strong initial production of the Bearcat #4 well and expect increased production once the Gardner formation is brought on-line.”
He summed up, “Plans are underway to commence drilling 3 additional wells by the end of 2014. We are excited by the multi-zone potential in the Ballinger area.”
Cardiff Energy was in the news recently when the North Vancouver-based company announced 12 days ago that it would test two prolific zones at Bearcat #4.
Shares climbed 17.14% on the news to $0.205 per share.
Currently there are 33.9m outstanding shares with a market cap of $7.0 million.