RE:RE:Where we are relative to MagdalenaOptions for production growth are nearing final decisions.
Current producing wells are from 17 orginal deviated wells drilled into the offshore SpringHill formation.
Of the original 17 wells into the offshore Springhill ( see RJs graph ), 4 have been permanently abandoned, two are producing and and 1 is a water injection well.
That leaves 10 wells that have been suspended for lack of workover funds.
These are now being scrutinized for workover potential additions to production, and then a decision will be made as to which and how many will be reactivated.
These are into the offshore Springhill formation and have extended production profiles.
The other two formations........onshore Tertiary into the Springhill for gas and Canadon
Luck which is oil bearing... are being reviewed for development drilling.
If they can attract JV partners, our portion can be funded from existing cash flows..hence no financing needed.
The extended ) Long ) reach well into the offshore Springhill is also being considerted relative to production gains from the other three formations.
It will take about $10 million to sidetrack the well drilled in 2012 and into the main formation reservoir.
The gas processing station relative to processing demand from its major customers has at least another 10 years of full capability needs.
As such, it is a superb sustainable cash cow.