Curzon Energy Plc, an energy company pursuing a targeted acquisition strategy of oil and gas appraisal and development assets, is pleased to announce that workover and clean-out operations have been completed on three of five wells (9-21, 1-21, and 15-21) at its Coos Bay CBM project. Clean-out operations are now commencing on the fourth well (16-16) and it is anticipated that the clean-out of this well, and the fifth and final well (13-15), are scheduled for completion in the coming weeks, to be followed by production flow tests on each well.
As expected, workover operations have encountered sand and coal fines in the wellbores, which the company believes may have created restrictions to flow from deeper pay completions. The company anticipates that removal of these flow restrictions will improve on the historic test rates of these wells. Following completion of the clean-out operations and various upgrades to production equipment, each well will undergo a series of flow tests in order to establish well deliverability.
Curzon Energy is Operator and has a 100% working interest in the Coos Bay CBM project, c. 45,000 acres of known Coalbed Methane (CBM) Gas accumulations in Coos Bay, Oregon, with 2C contingent resources of 273.5BCF. The Company is implementing a cost effective staged development plan, targeting first gas from Phase I in Q2 2018. The Phase I work programme consists of the low-cost workover of five existing, and drilling of two new wells.
Stephen Schoepfer, Managing Director of Curzon Energy said:
“We are delighted that operations continue to progress as expected. With only two workovers remaining we look forward to initiating a thorough well testing programme on all five wells shortly and look forward to updating shareholders on our progress in due course.”
Notes to Editors:
Curzon Energy was founded in 2016, with the objective of acquiring oil and gas development and production assets initially in the USA. Its first acquisition is 100% of Coos Bay, c. 45,000 acres of known Coalbed Methane (CBM) Gas accumulations in Coos Bay, Oregon with 2C contingent resources of 273.5BCF, where it intends on implementing a cost effective staged development plan to maximise shareholder value, targeting first gas in Q2 2018. Management intends on building on its attractive asset base in the future, utilising its first mover advantage with further selective value accretive acquisitions.
The Company is led by an experienced Board and senior management team who have extensive industry and financial experience. Curzon Energy is listed on the LSE Main Market under the ticker CZN.
About Coalbed Methane (CBM):
Coalbed methane gas (CBM), coal seam gas (CSG), or coal-mine methane (CMM) is a form of natural gas extracted from coal beds. It is an unconventional form of natural gas found in coal seams or coal deposits. CBM is generated during the process of coalification which is the transformation of plant material into coal and is contained in the coal microstructure. Typical recovery entails pumping water out of the coal to allow the gas to escape. Methane is the principal component of natural gas. Coalbed methane can be added to natural gas pipelines without any special treatment. CBM is made up of 95 per cent methane and does not contain sulphur compounds such as hydrogen sulphite.
The United States has the longest history and greatest volumes of CBM production, however other countries such as Canada, China and Australia have increased production over the last decade.
Competent Person’s Statement
The information contained in this announcement has been reviewed and approved by Thomas Wagenhofer, Technical Director of Curzon, who is a petroleum engineer and oil and gas executive with over 20 years’ international industry experience. Mr. Wagenhofer holds a MS degree in Petroleum Engineering from the University of Texas at Austin (1995) and a BS degree in Petroleum Engineering from the University of Alaska Fairbanks (1994). He is a registered Professional Engineer with the Texas Board of Professional Engineers (current status inactive) in the State of Texas, USA.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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