Fremont Petroleum Corporation Limited (ASX: FPL), an oil and gas exploration and production company, based in Colorado USA from the energy sector, reported that its J.W. Powell #23-25 well has started producing strong oil and gas volumes from the Niobrara Formation. The crude oil through the J.W. Powell #23-25 well is flowing to the temporary tanks that are available at the site which is also a source of immediate revenue generation. The well, in its early stage, was producing 15-foot gas flare.
Fremont Petroleum Corporation believes that these rates will be increasing materially as the remaining part of the frack fluids gets unloaded from the well bore. It is found that there is a steady increase in the volume of the oil and gas produced from the well as the water cut falls.
The company provided the status of the well around 1:00 am AEST on 8 March, where the well unloaded approximately 35% of the frack fluid. The engineers of the company expected that the well will be unloading 50% of the frack fluid most likely during the next week.
The J.W.Powell #23-25 well was under limelight from 14 December 2018, and there was ongoing development on the well.
On 5 March 2019, FPL advised about the advancement of the back flow operations on the J.W.Powell #23-25 well.
Timothy B Hart, who is the managing director and CEO of Fremont Petroleum Corporation Limited stated that initial volume from the Powell #23-25 is building strongly. He also stated that in the Pathfinder field, there is another solid oil & gas producer on line. The oil that is getting collected will be adding considerably to the monthly revenue of the company immediately.
The results prove the productivity of the Niobrara Formation in the Pathfinder Field. It is expected to add value to the company’s acreage. The results also prove that the oil and gas field is an outstanding field with its major portion being vastly undeveloped.
Mr Timothy B Hart, based on the thickness of the Niobrara Formation in the J.W. Powell well, believes that it will be a healthy producer for Fremont Petroleum Corporation Limited.
During the December quarter 2018, there was a net cash outflow of A$1.735 million from the operating activities of the company. The cash outflow through the operating activities was mainly driven by the payment made for the exploration & evaluation, administration and corporate costs, production and the staff cost.
There was a net cash inflow of A$2.279 million from the financing activities, where the revenue was generated by issuing shares of the company. By the end of the December quarter on 31 December 2018, the company had a net cash and cash equivalent worth A$1.330 million.
In the last year, the stock has given a positive return of 57.14% with the YTD return of 83.33%. After the announcement on 8 March, the shares of Fremont Petroleum Corporation Limited skyrocketed by 22.22%, closing at A$0.011. The stock is trading flat today at A$0.011 (As at 1:55 PM AEST, 11 March’19). The company has a market capitalization of A$13.56 million with approximately 1.23 billion outstanding shares.
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