This well is the second well to be drilled, stimulated and produced on a post farmout basis within the Sugarloaf project and Empyrean participates in sales on a post farm out WI basis of 3%.
The well was stimulated with 14 stages across approximately 5,000 ft of horizontal section. The well commenced flow back recently and was gradually unloaded to sales.
The well has been unloaded to sales and the temporary well test equipment have been released.
The company said that its wells continue to be flowed with highly restricted chokes and this methodology, which has been applied to the Luna-1H well, has been designed to limit draw down on the reservoir in order to improve decline curves and Estimated Ultimate Recoveries ("EUR").
In addition, due to the number of additional wells now on production and the forward plan into next year, the operator Hilcorp Energy is installing a new wet gas pipeline and centralized processing facilities with sufficient capacity to meet the anticipated increases in produced volumes for the next phase of development.
