Tanager (TSX: V.TAN, Stock Forum) had reason to celebrate today when the company announced the results from its production test flows at its first Joffre well located in Central Alberta which is the company is an operator, holding 50% interest in the project while Viking Investments Group holds the remaining interest.
According to the news release, the aforementioned well had a stabilized rate of 290 boe/d at 475 psi (235 barrels of oil and 325 mcf/d of gas) over a 12 hour period. The fluid produced was 100% high gravity oil.
During the first four hours of testing the well flowed at 875 boe/d at 262 psi wellhead pressure. The production rate was reduced in the last 12 hours in order to keep the reservoir drawdown to less than 10%.
The company noted that the next step will be to place the well on production through the existing pipeline at the lease edge. This is expected to take place within the next 4-6 weeks. Plans are underway to reactivate a second well at Joffre which is anticipated to be done by the end of March.
Tanager Energy was in the news recently when the Lethbridge, Alberta-based company announced results at the end of December from the well pressure survey at its first Joffre well.
Shares rocketed 200% on the news to $0.12 per share.
Currently there are 53.9m outstanding shares with a market cap of $6.5 million.