NewsAthlone Energy Ltd. has drilled and completed a fourth successful well in the Kitscoty area of Alberta. This well was put on production on Nov. 30, 2005, and is currently producing 50 barrels oil per day. Athlone has a 100-per-cent working interest in the Kitscoty project and is the operator.
This is the third successful oil well to be completed in the Kitscoty area. The first well has been producing at 50 barrels of oil per day since Aug. 13, 2005, and the second well has been producing 55 barrels of oil per day since Oct. 20, 2005. The company has obtained AEUB approval to downspace to 20 acres on the quarter-section containing these three oil wells. Accordingly, Athlone plans to drill an additional four wells on this quarter-section during the first half of 2006.
The fourth well was drilled, completed and tested in two zones at 1.34 million cubic feet of gas per day (see news in Stockwatch dated Sept. 9, 2005). Athlone has begun construction of a pipeline to tie in this gas well. The tie-in will be completed by mid-December.
At South Lloyd, Athlone has recently completed a 3-D seismic survey on its lands. Seismic evaluation indicates the potential for five drilling locations. The land has been down-spaced; therefore, an additional five wells may be drilled pending success of the first five. These locations are in addition to the locations at Kitscoty. The company is in the process of permitting its first drill location at South Lloyd. Athlone has a 100-per-cent working interest in the South Lloyd project and is the operator.
Athlone has farmed out a well in the Smoky Lake area which has been drilled and cased. This well is expected to be tied in during January, 2006. Athlone has a 15-per-cent GORR, convertible to a 34.38-per-cent working interest upon payout.
Athlone's current production with the addition of the new oil well is approximately 200 barrels of oil equivalent per day. This production does not include the gas well currently being tied in.
Athlone entered 2005 at 50 barrels of oil equivalent per day and the company expects to exit 2005 with production in excess of 300 barrels of oil equivalent per day. Due to Athlone's success in 2005, the company has recently added to its technical staff and plans to add additional staff in early 2006.