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Avery Resources Further Improves Economics of Toparoa Well with Pipeline Unit
Avery Resources Further Improves Economics of Toparoa Well with Pipeline Unit.
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\n\n\nCALGARY, June 5 /CNW/ - Avery Resources Inc. (TSX-V: ARY) today announced\nan arrangement to produce the Toparoa-1 well into pipeline-connected Unit\nproduction facilities immediately adjacent to the licence. The agreement will\nprovide Avery with improved economics for the well due to lower initial\ncapital requirements, operating cost savings and less expected downtime when\ncompared to the original plan for trucking of the oil.\nUnder the arrangement it is contemplated that initially, a flowline will\nbe connected to the well, allowing production to commence by natural flow\nagainst facility pipeline pressure at a rate of approximately 700 - 800\nbbls/d. The flowline is expected to be in place towards the end of the third\nquarter of 2006. An electric submersible pump (ESP) will be installed within\nthree months after tie-in, potentially bringing production rates up to an\nestimated 1,300 to 1,600 bbls/d as initially expected for the Toparoa-1 well.\nAvery has earned a 35 percent interest in the production licence.\nAvery is pleased to announce that it has also signed a letter agreement\ndated June 2, 2006 to receive a significant payment from its partner in the\nToparoa-1 well to recognize the delay in production start up. The payment is\nsubject to a final agreement and details will be released as soon as they are\navailable. Once received, the funds will be added to Avery's treasury for its\nongoing exploration and development program.\n\"With this arrangement, the overall economics of the Toparoa-1 well are\nexcellent,\" said David Little, chairman and CEO, Avery Resources. \"Equipping\nand tie-in costs will be negligible compared to the original plan which\ncontemplated producing into tanks and trucking the oil. We also anticipate a\nsignificant reduction in operating costs and down time. This is a good\narrangement for Avery. \"\nAvery also announces revised timing for the drilling of the Light\nFingers-1 due to rig availability in the Cooper Basin area. The Light\nFingers-1 well is a look-alike prospect to the Toparoa oil discovery. A rig is\nscheduled to drill Light Fingers-1 during the third quarter of calendar 2006,\nprobably in July. Drilling of Light Fingers-1 will complete Avery's earning\nrequirements for the balance of the Murteree High Block containing\napproximately 13,000 acres, giving the company ...