Avalon Oil & Gas has said that it plans to begin a workover of the Moody 31-9 #5 property in Lamar county, Mississippi.
Kent Rodriguez, CEO of Avalon said that they were waiting for a workover rig to move on the Moody 31-9 # 5.
Mr. Rodriguez said: “As soon as the rig is on location we will pull all existing downhole equipment, clean out the wellbore, run a gamma ray log, re-perforate the upper Tuscaloosa zone, re-run tubing and test the flow rate for initial fluid entry rates.
“If this operation is successful, we will test the integrity of the salt water disposal well, install a hydraulic lift system and begin production. We hope to increase the fluid recovery to 2,000 barrels of fluid per day, and maintain an oil cut of at least 6%. If we can maintain production at this level, our monthly production will increase by 40%.”
Earlier, Avalon entered into an agreement with Bayside Petroleum Company to purchase an 18.75% working interest in Bayside’s Lamar county Baxterville field prospect, which spans over 13,000 acres, with more than 300 producing wells.
The 200 acre leasehold contains three wellbores; two that are equipped for production, and a salt water disposal well.
The field has produced 262 million barrels of oil and 450 billion cubic feet of gas, primarily from the Tuscaloosa formation. The wellbores on the Baxterville field prospect have produced from the lower Tuscaloosa sand at a depth of 8,800ft.
The three wells have produced more than 500,000 barrels of oil and were producing 200 barrels of fluid, with a 5% oil cut when they were shut-in in 2006, Avalon said.