Results from the final certification test confirmed initial production rates of 192 BOPD of oil (sweet Texas crude) and 822 MCF per day of natural gas from the Madeley F 1H well.
The company is in the process of connecting the natural gas to a conveniently located pipeline and plans to sell the gas into the market at a price of about $2.80 per MCF.
Treaty expects its revenue from the sale of the gas will be about $1,725 per day, or $51,750 per month, while its revenue from the sale of oil from this well will be about $14,616 per day, or $438,000 per month.
TECO chairman Andrew Reid said the company intends to re-complete this well by drilling a much longer lateral into the Fredricksburg Zone that currently is drilled to only 16ft.
"Treaty will eventually drill this lateral to a length of 1000ft or possibly to a maximum of 1770ft," Reid added.
"We anticipate the oil and gas production rates to increase significantly upon the extension of the lateral."
