Abraxas Petroleum Corporation says that the Lakeside #1H well in Converse County, Wyoming has produced an average of 250 barrels of oil per day during the first ten days of production.

The Lakeside #1H was drilled to a total measured depth of approximately 12,500’, including a 3,800’ lateral in the Turner sandstone, and successfully completed with isolation packers and a seven stage fracture stimulation. The well is currently constrained at a flowing rate of 200 barrels of oil per day with associated gas. During testing, the well produced in excess of 700 barrels of oil per day for short intervals. Abraxas Petroleum owns a 100% working interest in this well.

Abraxas’ leasehold position in the Brooks Draw area of the southern Powder River Basin includes approximately 14,000 net acres which are held by production (“HBP”). In 2000, Abraxas shot a 23-square mile proprietary 3-D seismic survey over its core HBP acreage.

“We are very pleased with the initial production rates from the Lakeside #1H. In determining where and which direction to drill the lateral, we used our interpretation of the 3-D seismic to orient the lateral to maximize the intersection of natural fractures and for the completion, we utilized a Bakken-style completion of isolation packers with a multi-stage fracture stimulation. We plan on testing the well for 30-60 days while monitoring pressure and production data. The well is currently producing more gas than we anticipated – therefore, in the future, we may be limited in the amount of oil we can produce per day in order to keep the gas below flaring limits until an outlet for the gas is constructed. Several different outlets are within a dozen miles; however, environmental surveys and construction of a right-of-way can usually only be accomplished during the summer and early fall. With regard to our acreage position at Brooks Draw, we have allowed and we may continue to allow some of our undeveloped acreage outside of our 3-D to expire as we believe that 3-D seismic may be one of the keys to unlocking this play. We have identified 15 additional locations on our 3-D with similar natural fractures as the Lakeside #1H,” commented Bob Watson, Abraxas’ President and CEO.

Tags: Abraxas Petroleum Corporation