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- Fremont Petrolem (FPL) has commenced a 21 well workover program at its wholly-owned Trey Exploration leases in America’s mid-west
- The junior stock is looking to up its 71 barrels per day oil production by working over its existing well repertoire
- Phase one of the workovers is set to commence in Indiana, where FPL will aim to up production on an initial 14 wells
- Fremont shares have spiked 50 per cent on the back of the announcement, trading at 0.5 cents each
Fremont Petrolem (FPL) has commenced a 21 well workover program at its wholly-owned Trey Exploration leases in America’s mid-west.
The company is looking to up its oil production, which currently sits at around 71 barrels per day, by working over wells that have the potential for primary and secondary oil recovery.
Fremont acquired the collection of leases from Trey Exploration in October last year, bringing its oil well repertoire to 170.
Work is expected to kick-off in Indiana at the Knox County leases, which FPL describes as one of the largest under-developed tracts of land in the Illinois basin.
The junior explorer says it will initially focus on 14 wells as part of phase one of the workovers.
Trey owns and operates seven oil-producing leases in Knox County, with 24 producing wells, nine injection wells, and 16 inactive wells.
FPL has affirmed its focus is on delivering early production gains from the initial workover program, with first results to be reported at the end of this month.
A company statement also indicated that acquisition opportunities could be on the cards in leads where “asset prices are mismatched with their underlying value”.
The explorer also hinted at expanding into natural gas, advising that compelling conventional producing natural gas assets are being assessed and any potential transactions “will be non-dilutive”.
Fremont Petroleum Chief Executive Officer Tim Hart says the Trey leases have tremendous upside.
“This workover program marks FPL’s first investment in these leases to enhance production,” he commented.
“Following our recent capital raise we are very well funded to deliver material
production gains and increased cash flows from these ongoing workover programs across all our leases,” he added.
Fremont shares have spiked 50 per cent on the back of the announcement, trading at 0.5 cents each at 3:41 pm AEDT.
