Join our daily newsletter At The Bell to receive exclusive market insights
- Fremont Petroleum has announced the confirmation of high-quality oil and gas from its Niobrara Formation operations in Colorado
- The 23-25 JW Powell Well will be giving the company gas valued at 1,201 British Thermal Units and oil with a lightness of 34.8 under the standard of the American Petroleum Institute
- Gas will provide the company 2.3626 per 1,000 cubic feet, representative of 60 per cent the standard price of the West Texas Intermediate measurement
Fremont Petroleum has announced today the confirmation of high-quality oil and gas from its Niobrara Formation Colorado operations.
The surveyed well’s 23-25 JW were of high-quality value of 1,201 British Thermal Units and oil lightness at 34.8 by American Petroleum Institute standards.
Gas will be yielding the company 2.3626 gallons per 1,000 cubic feet. The heavier components of the gas are said to be highly valuable, typically yielding 60 per cent of the West Texas Intermediate standard price.
As part of crude oil assay and an extended natural gas analysis, molecular component results of the gas show 80.6 per cent methane, 8.5 per cent ethane and 5.3 per cent propane.
Fremont management also said the quality oil on site is in high demand.
Company Managing Director Tim Hart says today’s results mark high-quality output from the well in similarity to nearby high performing oil and gas in the Wattenberg Field and DJ Basin.
“[The results] further validates the quality and unlocked value of this field. With a further 500 drilling locations using at 40-acre spacing, we have lots of running room to become a significant natural gas producer in Colorado,” he said.
To preserve valuable gas reserves on site and to avoid uneconomic flaring, Fremont will not produce oil from the well until its first gas offtake agreement is finalised. The company has plans to also construct a gathering system and a processing facility to maximise economic value and returns.
Fracking operations at well 23-25 were completed earlier this year in February.
Despite the positive announcement, FPL shares remain the same this morning in the Australian market. Shares continue to trade for 1.1 cents each in a $18.35 million market cap.
