The new producers – Ridge Runner (RR) 13-17, 11-17 and 2-19 wells – have been connected to the permanent pipeline and are now delivering and selling gas into the distribution grid.

However, the first sales are about three or four weeks later than expected, after severe winter storms hit the Rocky Mountains and central Utah regions.

Marion said the near-term forecast was for reasonable weather, allowing it to bring all of its Clear Creek wells into production.

“While new production from our Clear Creek, Utah project has encountered significant obstacles over the past year – severe weather and record snowfall, oil field services challenges, infrastructure time lags, ordinary mechanicals – the timing of the current initiation of material production should be noted,” the company said.

“These delays have been disappointing, but current market forces and prices have proved this to be a most fortuitous time to bring our production onstream.”

Marion said the RR13-17 and 11-17 wells production tested at a combined rate of 8 million cubic feet of gas per day, while the RR 2-19 well exhibited similar strong gas show levels without being formally tested.

“Production levels are expected to further increase and then stabilise within the next two to three weeks,” the company said.

“Stabilised production of the old, pre-Marion wells at Clear Creek was in a range of 1 million to 5 million cubic feet per day, with most wells producing at the upper end of this range.

“Marion is confident that the newly drilled Clear Creek wells on average will produce at rates within this range.”

Also at the project, Marion says the Ridge Runner (RR) 1-30 and 11-20 wells are in the final stages of completion, with first production expected in late January.

After fracture stimulation and clean-up, the Ridge Runner 8-19 will be put on production as well.

All three wells exhibited gas show levels similar to the RR 13-17, 11-17 and 2-19 wells, Marion said.