Dome Energy AB. (Ticker: DOME) herein after “Dome” and/or “the Company”) is pleased to announce that on the 24th of December, commenced the drilling of the Gulf Lee Hager Fee 37 well (GLHF #37) on the Orange field, Texas.
Dome’s GLHF #37 well is the first of a potential series of wells on the Hager lease. The well locations have been selected using data gathered from over 60 square miles of the Company’s seismic data coupled with the analysis of over 300 existing wells surrounding the acreage. To date, Dome has identified 12 new well prospects and 20 recompletion targets.
The first well is targeting up to 17 productive zones from the Miocene and Frio formations with the Total Depth (TD) of the well approximately 6,500 ft. Based on records from analogue wells, Dome estimates 70,000-120,000 barrels of oil is potentially recoverable from the well. The drilling program is projected to increase total field production to 500 barrels of oil equivalent per day (boepd) with production costs below $20 per barrel.
At present, the drilling rig is currently at ~2,100ft and is expected to complete the drilling stage in the second half of January 2015. Typical initial production rates is up to 100 boepd with crude selling at a premium to WTI.
Paul Morch, CEO commented; “We are excited to have the drilling operations underway. With today’s oil price conditions, drilling new wells on fields like Orange makes sense and has a much more favorable return on investment compared with shale along with significantly lower production expenses.”