Legend Oil and Gas Ltd. (OTCQB: LOGL) completed the drilling of the first four wells in its multi-well development drilling program on its oil property at Piqua, Kan., and has successfully completed and equipped three of these wells.
All are now on production at rates that have far exceeded the initial production estimates for the wells. A mechanical issue with the fourth well prevented the frac from being completed effectively; however, a remedial completion is slated to be done shortly as a result of the production performance of the offsetting wells.
"Despite weather delays in the first half of August, we were able to bring the first slate of wells in our 2013 drilling program on line prior to the end of the month. Initially we were getting back mainly 'frac water', however, the three completed wells have now turned to 100% oil and are pumping at rates which have more than doubled the production from the entire Piqua project. Average rates over the first four days of oil production have exceeded 14 barrels of oil per day with no water, for an average per well of close to 5 barrels of oil per day," Marshall Diamond-Goldberg, president, said in the release.
The Pat Collins lease had been previously developed with only four oil wells on the 320 acre parcel. With inter-well spacing of 2.5 acres and higher than anticipated production rates from the newly drilled wells, the company estimates that an additional 40 or more wells could be drilled to fully develop the Squirrel reservoir on the lease. Legend has begun the process of permitting the next four locations and expects to spud the first of these wells in early October.
Legend Oil and Gas Ltd. is an independent energy company engaged in the acquisition, exploration, development, and production of oil and gas properties in western Canada and the U.S. The company is headquartered in Seattle.