Update Benchmark Oil & Gas in June 2013

Commodity Quest : Update Benchmark Oil & Gas in June 2013

Benchmark Oil & Gas:

– Produced and sold nearly 3,000 barrels in May , not including wells where Benchmark is not operator .
– Obtained a license for a new injection well . Another application has been submitted.
– Weatherford finished the installation of the well -pilot .
– First results from the seismic studies are expected in the coming weeks .
– Potential shift of production zones of 6-8 wells have been identified. Final results are expected in late July. Each zone can provide 20-40 barrels per day production .
– The next round of workover is expected to begin in late June. 7 wells will be processed at a cost of between 150 to 200,000 USD and increase production by more than 20 barrels per day.

“In May , we managed to produce near record levels and has also seen a stability of production which means that in future we can resume production from additional wells . The excess capacity that exists today in our salt water disposal well permits production from wells that were previously held back due to bottlenecks in the ability to capture and reinject brine. The major program to expand production will begin as soon as the license for salt water disposal well Gulf Fee # 11 is obtained. The well will be located in the southwest corner of the field , an area that could not produce optimally due to lack of ability to handle salt water.

The project with well -pilot run by Weatherford progressing according to plan . Weather Ford’s analysis and installations in several of our wells have already shown good results , which will reduce the long-term production costs. By optimizing production times , the wells can be produced more efficiently and with less wear and expenses.

Concerning the seismic surveys will Geotrace to announce its first round of results this week. The survey will indicate the quality of the data compared to the older seismic our geologists previously worked with. The next step will be to integrate the new data with our specific drilling and production history to evaluate the next exploration well. We expect that the evaluation and drilling decision is expected by the end of August, ” says Pål Mörch , CEO.

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