Operations
Arsenal Energy production increase is attributable to the acquisition of GEOCAN Energy Inc. that closed on October 8, 2008, and the addition of Bakken volumes from North Dakota. These increases were partially offset by the shut in of around 100 bbls/d of marginal production and by natural declines. Arsenal Energy’s first quarter 2009 production mix was 75% oil and liquids and 25% natural gas.
Operating costs decreased to $17.43/boe in first quarter 2008 vs. $22.65/boe for the same period in 2008. The decrease is due to the shut in of marginal high cost production, the addition of low operating cost Bakken production, and various operating cost initiatives.
Arsenal Energy has a 20.3% working interest in the Moen well. Because the operator has decided to place the well on production without stimulating the formation, it is anticipated this well will produce at rates lower than George Robert. The well can be stimulated at a later date. Production test results should be available shortly. The second well, Lyla 24X-10, is Arsenal’s first Bakken well in the Lindahl field. Arsenal has a 12.9% working interest. Conclusion operations are ongoing with results anticipated over the next few weeks.
