Rocksource ASA says that the December 2007 production from its US subsidiaries averaged 1,369 boepd (barrels of oil equivalent per day). Since the new processing facilities came on stream in late December, the daily production has averaged 1,648 boepd, and the current expectation is that the original end-2008 production target will be reached within January 2008. The stated production numbers are based on metered daily production, and may thus differ slightly from the final production volumes that will be used for accounting purposes due to changes in stock volumes etc.

The original end-2008 target of 2,000 boepd has previously been revised to be reached within first quarter 2008, and is now further accelerated to be reached within January 2008 due to well performance being better than anticipated. The results from the wells shall now be analyzed in close cooperation with the technology group in Bergen to establish pressure changes and subsequent expected decline curves. This work will lead to revised production profiles for the fields, which will be published in due course.

Daily production in fourth quarter 2007 averaged 1,223 boepd which compares to 650 boepd in third quarter 2007, representing an increase of 88%. The daily production in fourth quarter 2006 was 65 boepd.

Jacob Sannes, CEO of Rocksource’s US subsidiaries says “We are extremely pleased with the production build-up. Our focus through 2007 has been to increase production and revenue. Our 2008 focus will increasingly be to maintain well production and manage the decline in order to optimize the long term results from Drews Landing and New Ace; In addition to looking for new opportunities. The business model of combining state-of-the-art technology with local oil field experience is continuing to be successful”.

The final well in the current drilling campaign has now been spud and is expected to be completed within January. Results from all wells will then be incorporated in the field reservoir model to ascertain whether further drilling may enhance overall economic results from the two fields.

Tags: Rocksource Group