Under the terms and conditions, Teppco Crude Oil (TCO) agrees to pay Ameriwest the Wyoming Sweet Crude Oil Posted Price plus $3.08 per barrel quality premium.
During the month of June 2008, Ameriwest produced approximately 340 barrels of oil from five wells on the South Glenrock C oil field at approximately 10-15 barrels of oil per day (bopd). The company plans on completing several work over programs intended to increase production to 35-plus bopd in the coming months.
The South Glenrock C field is located in the southwest area of the Powder River Basin where Anadarko Petroleum has successfully implemented a CO2 program on the Salt Creek oil field and is adjacent to the Big Muddy CO2 development project.
Walter Merschat, president of Ameriwest Energy, said: We are extremely pleased to share this milestone with our shareholders as this signifies the first revenues earned by the company. Management is dedicated to increasing the production on the South Glenrock property and looks forward to reaching the ultimate goal of 2,800bopd.
