Cash flows for Petsec from US discovery wells

Cash has begun to flow for Petsec Energy after the company announced the successful drilling and completion of three discovery wells on the West Cameron lease in the Gulf of Mexico.

Petsec Energy said net production from the offshore Louisiana wells has stabilised at approximately 18 million cubic feet of gas per day with the gas currently selling at prices in excess of US$5 per thousand cubic feet of gas.

"The successful drilling and completion of the West Cameron wells establishes a cash flow and production base from which Petsec can significantly expand its operations," said Petsec's chairman and CEO, Terry Fern. "This level of production will greatly benefit from the current high gas and oil prices."

Petsec said independent reserves estimates are being prepared while well log results were consistent with the total pre-drill estimates for the three wells of 25 billion cubic feet of gas equivalent (bcfe) gross and 15 bcfe net to the company.

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