The company's business plan involves using modern technology to remediate old US oil and gas wells.

Of its 10 wells now achieving commercial flow rates, two wells started producing on November 24. Louisiana said it expected the remaining eight wells to be tied into the pipeline by the end of this month.

“Early flow rates from these first two wells have been very encouraging,” chairman Tim Johnson said.

“As additional wells are tied into the pipeline system, and given the benefit of more time, average daily flow rates will become apparent. It is expected the company will be in a position to announce these flow rates early in the new-year.”

Louisiana Petroleum’s Caddo Pine Island Field Project comprises five leases and associated infrastructure.

In recent weeks, field activities have focused on the upgrade of the gas pipeline system in preparation for gas production. Louisiana said gas production was a valuable supplement to its oil production.

“Numerous wells were identified as potential producers of gas upon service from the work-over rig,” it said.

“It is common for these wells, post being cleaned and scrapped, to initially flow greater quantities of gas than will be sustained in the longer term.”

For this reason, Louisiana Petroleum said each well was flared until flow rates were presumed stable. A decision was then made to either tie the well into the pipeline for the production of gas, or to place on active swabbing rotation for oil production, it said.

The company said the swabbing operations for oil, which were temporarily interrupted during the gas pipeline system upgrade, were expected to return to normal in the coming weeks following decisions on the suitability of the remaining wells for gas production.