In this phase, a third, new zone was perforated and fracture-stimulated. The well is now producing at a daily rate of 1.4 million cubic feet of gas and 10 barrels of oil from this zone, flowing at 1200 lbs of tubing pressure through a 22/64-inch choke.

The reservoir is also present behind pipe, but has not yet perforated in the Harris-1, the Huntington-1L and the Walker-3 wells.

“The company’s multi-well development drilling and recompletion program is beginning to show positive and repeatable results, with potential for a solid build-up in operating cash flow,” said Carpenter Pacific managing director and CEO Jeffrey Clarke

“As a result of commodity prices – currently approximately US$ 9 per thousand cubic feet – operating cash flow margins should be at enviable levels.”

Before the recompletion, the Childers well was producing from the Travis Peak reservoir at a rate of 300 thousand cubic feet and 10 barrels of oil per day.

Carpenter Pacific temporarily shut in production of this well in order to test a second zone in the Travis Peak area.

But even though production was almost stable and continuing to increase in this second zone (reaching 450,000 cubic feet of gas and 10 bbls of oil daily), it too was shut in, as plans for phase two of the recompletion were executed.

Carpenter Pacific now plans to combine all three reservoirs and set them into co-production. If successful, it is expected that these wells will produce more than 2 million cubic feet of natural gas and 30 barrels of oil daily.

The company’s strategy is to increase development of low cost reserves and production of non-conventional gas in the onshore US by exploiting mature reserves and finding new reserves in existing production areas.