Boston, MA 01/24/2014 (wallstreetpr) – Nextraction Energy Corp. (CVE:NE) has announced resumption of production at Nobel 6-24 well that remained shut-in over the past two years. The company explained that operation in the liquids-rich Pinedale Anticline plant was due to depressed natural gas prices that affected the global markets.
The company’s president Kent Edney believes that there will be more benefits for NE going forward now that production rate is okay and that natural gas prices have improved over the winter. The well is reported to have re-launched with some of its historic best production rates.
That being the case, Mr. Edney believes that the company is points to enter a strong cash flow position starting 2014. Of interest to note is that the company reopened the planned with new personnel and tweaked approach to production.
Nobel 6-24 well has been running for about 2 weeks since reopening and production is averaged at 650 mcf/d of natural gas and 30 bbl/d of oil, thus giving a combined rate of 138 boe/d. According to the management, these rates are not far from what the well used to give when it first come into operation in 2010.
Resources
The Nobel 6-24 well had Proved plus Probable reserves of 22,000 bbl of oil and 1,093 MMcf of natural gas assigned to it by the end of 2012. These resources are valued at $2.1 million in the scale of Net Present Value. In addition to this, the company had two undeveloped locations holding possible 4,785 MMcf of natural gas and 96,000 bbls of oil, bearing Net Present Value of $3.3 million.
Nextraction Energy Corp. (CVE:NE) currently has land in Pinedale area measuring 1,900 net acres.
The stock
Investors reacted positively to the news of the Nobel 6-24 reopening, thus helping the stock of Nextraction Energy Corp. (CVE:NE) to gain 27.27 percent to $0.14 on Thursday. The day also witnessed heavy trading of the stock at 289,000 against daily average volume of 9,715.
