Terrace Energy Corp. announce early results from its latest horizontal well, the SP5 1-16H on its STS Olmos Project in South Texas, USA with its partner, BlackBrush Oil & Gas LP. The well was drilled to a measured depth of 13,650 feet, including a horizontal section of approximately 4,300 feet in the target interval and was successfully fracture stimulated in 13 stages.

After less than 14% load recovery, the well continues to strengthen and is currently flowing at a rate of approximately 524 BOPD (barrels of oil per day) and 1.2 MMCFD (million cubic feet per day) of liquid rich gas or 728 BOEPD (barrels of oil equivalent per day).

All of the wells in this project will be tied into the wet gas gathering system located on the STS Project and delivered into a high efficiency natural gas liquids extraction plant. Based on the current test rate, liquids recoverable through the extraction plant are expected to contribute an additional 220 BOEPD to this well's revenue stream. There can be no assurance that the flow rate will stabilize at current or higher levels over time.

Tags: Terrace Energy