Since listing in July 2004 Tomahawk has drilled eight wells where it has achieved a 100% drilling success rate and acquired a 50% working interest in another two wells.
The fourth well starting production brings Tomahawk net production to more than 700 mcfg/day.
These current producing wells alone will generate about $1.5 million revenue on an annualised basis and revenue is expected to rise significantly when the next wells are completed over the coming months, according to Tomahawk.
The latest of these wells to go into production is the Snell-Heirs 2-19. Electric logs run on this well indicated 153 feet of gross hydrocarbons over several intervals in the secondary objectives which include both gas and oil.
The primary objective, the Caney Shale, intersected a gross thickness 120 feet with excellent gas shows. Tomahawk decided to complete and bring into production two of the secondary formations as well as the Caney Shale.
The first of these three formations has been brought into production and is already producing at 400 mcfg/day with 800psi pressure on the well casing. The Caney Shale and the other secondary formation are expected to be brought into production in coming weeks.
Tomahawk has a 75% working interest in this well reducing to 50% once all costs of drilling and bringing into production are recouped.
In addition to the company’s current four producing wells, six more wells are at various stages of being brought into production over the coming months.
The placement, which is part of an overall funding package going forward, will raise $3 million, before issue costs. It will go to funding an accelerated drilling program in Okfuskee County, Oklahoma.
In 2005 Tomahawk plans to bring these remaining six wells into production as well as drill another 20 to 25 wells.
“Within 12 months Tomahawk could have 30 – 35 wells,” said executive chairman Tony Brennan.
Tomahawk has a 100% working interest (71.5% after royalties) in all wells drilled in the 2005 and onwards pursuant to the amended participation agreement.
