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Oil & Gas production and development company, Fremont Petroleum Corporation Limited (ASX:FPL) released an update on its JW Powell #23-25 well in which the company informed drilling operations on the JW Powell #23-25 well are proceeding to plan, safely and on budget.
On 29 December 2018, the intermediate section of JW Powell #23-25 well was successfully drilled to a depth of 4,896 feet through the Pierre Formation, following which, the intermediate section was cased and cemented. As per the announcement, the company has commenced the drilling of the production section of the well, targeting depth of around 6,000 feet.
Fremont is expecting to intersect various hydrocarbon-bearing zones of interest between 4,896 feet and target depth. These formations include the Niobrara (the primary target), as well as the Codell and the Greenhorn, which are also productive in the State of Colorado and will be analyzed for future production potential.
To complete the fracture stimulation works, the company has secured the services of a leading, globally recognized oilfield services company. In an earlier update, released on 20 December 2018, the company advised that it has drilled the conductor section of the JW Powell #23-25 well to 100 feet. After which, the company cased and cemented the conductor section of the well.
The company is expecting that all the drilling work of the well will be completed before the end of January 2019.
In the September quarter of 2018 (Q1 2019), the company produced 7,920 barrels of oil out of which 5,792 barrels of oil was produced in Colorado and remaining 2,128 barrels were produced in Kentucky. The Production in the September quarter was impacted by multiple shut-in due to phase 2 fire bans; however, the production has been restored, and now the company is producing 120 barrels of oil in a single day.
There were no lost time safety accidents or phase 1 environmental incidents reported in September quarter. In the first quarter of 2019, the company earned a revenue of $370,885 which was $27,046 higher than Q4 FY 2018. During the quarter, the company completed a two-tranche placement of its securities to raise around A$3.75 million (before costs) for the development of its Pathfinder property. As at 30 September 2018, the company had Cash at bank of $796,037. At the end of September quarter, the company has Net cash used in operating activities of $735K.
In the second quarter of 2019, the company was aiming to complete the drilling of two wells targeting oil and gas production from the Niobrara Formation. Further, the company is also aiming to achieve positive cash flow by controlling costs & maximize oil revenues.
Meanwhile, in the last six months, the share price of the company witnessed a fall of 36.84 percent as on 8 January 2019. FPLâs shares traded at $0.006 with a market capitalization of circa $7.4 million as on 9 January 2019 (AEST 3:38 PM).
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