CALGARY and LONDON, Aug. 10 /CNW/ - Stratic Energy Corporation (TSX Venture: `SE', AIM `SE.') ("Stratic" or the "Company") is pleased to announce the commencement of oil production from the second production well in the West Don field (Stratic 17.25%) and the imminent start up of water injection and gas lift operations within the field. The field operator, Petrofac, is working towards bringing the field up to its full operating capacity over the next few months; the two production wells are currently producing in excess of 11,000 bopd gross and are expected to benefit from pressure support from the commencement of water injection and gas lift operations.
Overall plant uptime during the offshore loading phase is expected to improve once all well stock from West Don and its sister field Don South West are brought on stream and the plant fully commissioned. Since the first well was brought on stream on April 28, 2009 the field has produced over 800,000 barrels. The first two cargoes from the field have been lifted and sold at an average price to Stratic in excess of $67.34 per barrel. Stratic's net share of these proceeds amounted to approximately $8.25 million.
The remaining elements of the development plan involve tying the field back to the nearby Thistle platform, expected to be completed and commissioned early in 2010, at which point offshore loading will be discontinued. Stratic expects to provide an update on production estimates for the balance of this year and next year once the current commissioning phase is complete and both production wells and the injector well are operating under stable conditions.
Mark Bilsland, Chief Operating Officer, commented "We are pleased that the second production well is now on stream and that water injection and gas lift operations will commence shortly. We look forward to reaching full production capacity and achieving improved plant efficiency over the coming months".
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
About Stratic:
Stratic Energy Corporation is a Canadian-incorporated international oil and gas business focused on adding value principally through the appraisal, development and production of existing discoveries, supplemented by a low to moderate risk exploration program. Stratic's principal interests are in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.
Forward-looking statements
This news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital expenditures. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Stratic's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Stratic undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.
TSXV and AIM notifications
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD (petroleum petrophysics), and member of the SPE, is the qualified person who has reviewed and approved the technical information in this announcement for the purposes of the AIM Rules for Companies (incorporating the Guidance Note for Mining, Oil and Gas Companies).