Oil and gas junior Fremont Petroleum (ASX: FPL) has announced encouraging gas flows from its Amerigo Vespucci #1 well in Colorado, US, claiming the initial production rate has “exceeded expectations”.
The company today reported the well, located within its 100% owned Pathfinder field, recorded a 24-hour initial production test rate of 82 barrels of oil per day and 900 million cubic feet of gas, which equates to 273 barrels of oil equivalent per day.
Fremont hit crude oil during drilling of the well in June, with subsequent announcements confirming commercial quantities of oil flowing daily into collection tanks for future sale.
In today’s announcement, the company said gas flows were choked back to enhance oil production with peak flow rates of 2.4MMcf per day recorded during the initial production test.
The well is reportedly producing “hot, high quality gas with a high energy value of 1,232 British thermal units”, which is consistent with gas produced from the Niobrara formation in parts of the Wattenburg field and the DJ Basin.
Fremont said the most encouraging aspect of Amerigo Vespucci is the high oil component, which is expected to deliver a “very material boost to revenue”.
In addition, the well’s flow result surpasses the previously drilled JW Powell well, which recorded an initial production rate of 220boepd.
Future plans for the Pathfinder field
Fremont is awaiting a permit that will allow the Amerigo Vespucci well to be put into permanent production this month.
The company is now focused on drilling additional wells in the field before the end of this year.
Fremont managing director and chief executive officer Timothy B Hart said the company will be “aggressively” going after some more highly prospective oil targets “as soon as next month”.
“Concurrently, monetising our gas through binding offtakes is a priority for us before year end,” he added.
Fremont shares were 11.11% higher at $0.01 by early afternoon trade.