MOLORI ENERGY ADDS TO PRODUCTION
As part of its continuing redevelopment program, Molori Energy Inc. (MOL.V) has, in the past 60 days, successfully returned to production the State A and State C leases in Hutchinson county, Texas. The total portfolio of available well inventory in these leases is 42 oil wells and 12 gas wells (total of 54 wells). Of the 54 wells in inventory, 20 have been returned to production adding an average of 70 barrels of oil equivalent per day of production (comprising oil and high-British-thermal-unit gas).
In addition, the company's Texas-based operating partner, Ponderosa Energy, has successfully rehabilitated roads, reconnected gas sales flowlines and restructured storage facilities on the State A and State C leases. A third party analysis was conducted and proved commercial quantities of high-British-thermal-unit gas (in excess of 1,600 British thermal units) which has generated a substantial premium in sales price in relation to spot NYMEX.
Presently, the Molori and Ponderosa partnership is producing approximately 380 barrels of oil equivalent per day from the State A and the State C leases, as well as continued workovers from other leases in inventory. This demonstrates a 35-per-cent increase from the company's prior update (production as of Jan. 1, 2017) of 280 boepd, and an 850-per-cent increase from the initial investment that was producing 40 boepd in June of 2016. A new reserve report will be commissioned by Molori within the next few weeks to adequately reflect the increase in RTP (return to production) reserves.
The State A and State C leases form part of a former flowing river, which has not produced oil or gas since drying up several years ago. Based upon the flow rates of the recently reworked wells on these two leases, the company believes that the State leases alone offer the capacity to double current production.
Joel Dumaresq, chief executive officer of Molori, commented: "As evidenced by the recently disclosed NI 51-101 reserve report (see press release dated March 13, 2017), the Molori and Ponderosa partnership has increased P1 reserves to approximately $27-million (U.S.) while at the same time successfully reworking over 70 wells and improving daily production to an average of approximately 380 boepd. We fully intend to invest further in building reserves and production, with the goal of reaching our stated near-term production goal of 1,000 boepd by this time next year."
Molori holds a 25-per-cent working interest in certain leases owned Ponderosa Energy LLC, which is based in Borger, Tex.
About Molori Energy Inc.
Molori Energy is an oil and gas production company with current operations in the Texas Panhandle.