Perth-based Advance, which recently listed on the Australian Stock Exchange, yesterday said operator North American Energy had advised it of the new producing zone, the Conglomerate A Sand, at the Hendricks-3 well.
After plugging off an existing depleted zone, from 3795-3800 feet (1157-1158m), North American Energy perforated Conglomerate A, from 3713-3718ft.
The zone was then fracture stimulated and on flowing back the stimulation treatment fluid, the well averaged 155,000 cubic feet per day at a flowing tubing pressure of 450psi.
Advance said this addition production equated to an increase in cash flow to the company of $US13,000 ($A17,445) per month, assuming an average rate of 140,000cf/d and an average price of $6 per thousand cubic feet.
This was the third of five workovers for the Palo Pinto project and for Advance, which holds an average 75% working interest in the Palo Pinto asset.
Advance listed on the ASX in May after raising $A6 million to fund the acquisition of assets in proven producing regions of Texas.
The company aims to acquire producing assets and add value by stimulating existing wells and drilling low-risk infill and step-out wells, before selling those assets.
