06/06/2008 - 11:35

Nuenco signs gas sales agreement

06/06/2008 - 11:35

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Perth oil and gas explorer Nuenco NL has executed a gas sales agreement for all production from the Southeast Lost Hills projects with a major Californian oil and gas company.

Nuenco signs gas sales agreement

Perth oil and gas explorer Nuenco NL has executed a gas sales agreement for all production from the Southeast Lost Hills projects with a major Californian oil and gas company.

Initial production from the Jack Hamar 3-13 well in Calidornia is expected to be between 300,000 to 400,000 cubic feet per day. An independent reservoir engineering company, Resources Services International Inc, estimates recoverable gas based on flow tests and reservoir performance for only this well is between 0.20 to 0.70 Billion cubic feet of gas.

Following the signing of the agreement, and having secured the necessary surface agreements and access permits, the JV will be completing a short section of pipe to the buyer's pipeline from the already completed pipeline which it acquired with its rights to the Southeast Lost Hills Project. The pipeline is expected to be completed and operating by the end of the 3rd Quarter of calendar 2008.

Partners in Southeast Lost Hills are Nuenco and operator Solimar Energy.

Neunco executive director, Mark Freeman commented, "Jack Hamar 3-13 represents the first gas discovery in Neunco's portfolio where the Company's gross production is expected to be around 150,000 - 200,000 cubic feet per day.

With gas prices now over US$10 mcf, this will make an initial and meaningful contribution to Nuenco''s revenue.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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