Dome Energy AB. (Ticker: DOME) (herein after “Dome” and/or “the Company”) is pleased to announce the closing of wellbore interest assignments for eight non-operated wells from Pedevco (Pacific Energy Development). As previously announced, Dome acquired an average 22% working interest in eight new Wattenberg horizontal wells. These wells were completed in October of this year and each well had initial production rates in excess of 500 boepd.
These eight new wells were drilled and completed at 15% under budget with an estimated average initial production rate of approximately 601 boepd from the Niobrara “B” and Niobrara “C” Bench target zones. If the performance of these eight wells is comparable to its immediate offsets, these wells will produce nearly 34,000 cumulative boe in the first month and a half, or approximately 750 boepd net to Dome.
Commenting on these results, Mr. Paul Morch, Chief Executive Officer and President, stated: “We are excited about the performance and economics of these new wells and to have accomplished our production target of 2,000 boepd. The new Wattenberg wells will contribute to our already strong cash flows and further strengthen our working capital. Economics of these wells are very attractive with operational costs estimated to be below $8 per barrel. To preserve shareholder value, we reduced production by shutting-in certain wells as a result of the current commodity price.”