Dome Energy AB. (Ticker: DOME) herein after “Dome” and/or “the Company”) is pleased to provide an operational update on its ongoing development program targeting total production of 5,000 barrels of oil equivalent per day (boepd).
Wyoming – Zimmerman Butte
The drilling program on Zimmerman Butte (part of the recently acquired Gas Ventures’ portfolio) is underway. Using data gleaned from a recent 3-D seismic survey, the first well, the “14-35” well reached target depth at 4,700 ft. The well will now undergo logging and a production test before connecting the well to existing production facilities. Encouraged by the data, the results are expected to be in line with analogue wells on the field. Pending weather conditions and regulatory approval, Dome plans to drill a second PUD well on Zimmerman Butte in 2014. In 2015, Dome plans to drill 4-6 further wells on the field. In addition Dome is evaluating other PUD development opportunities on the other Wyoming fields it recently acquired, and expect to drill 2-4 wells on other Wyoming fields in 2015, in addition to several workovers.
Kentucky – KYTX
A development program on KYTX has been designed and is progressing as planned. Dome is upgrading compressor facilities, undertaking a well cleanup program and preparing to bring additional wells online to increase production to 600 mcfpd (100 boepd). Dome has recently acquired neighboring leases with producing wells containing additional development potential. The wells will be connected to the existing infrastructure, and will not add any additional costs to current operations.
Texas – Orange Field
Substantial ongoing drilling activity onshore US, particular in large shale plays such as the Eagle Ford, is causing a shortfall in available drilling rigs and services. Smaller drilling programs like Dome’s in Orange are suffering delays. The Company has put out drilling contracts for tender with a schedule to start drilling the Hager lease in November.
Texas – Concord Dome
Receiving approval from mineral right owners to shoot seismic has taken longer than expected and to not delay development further the Company is going forward securing a rig to start drill the lowest risk to potential “Tomahawk Humble A” unit. The first two planned wells will be drilled adjacent to the previous producing A5 and A6 wells.
Texas – Piedra Negra
After several delays from service companies, however, we feel confident that our new date for fracking operations in mid-November will be honored.
“We are excited to see the very early result of an extensive development program in Wyoming ” said Paul Morch, CEO. “We are currently working on developing all fields in our portfolio and expect to drill more wells in the coming months. Our diversified production from both oil and gas, allows us to deliver robust cash-flow that is secured by our strategic oil hedges well above today’s oil price. Our ambition is to continue our growth story, organically through development programs as well as by strategic acquisitions. We will deliver value to our shareholders through increased production, optimization of the portfolio such as the recently divested Terryville asset as well as through dividends.”