Cavu Resources has completed the third phase of its Chisholm lease rework and the reworking of three producing wells and one salt water disposal well in the US.

The initial combined flow rates are estimated at 60 barrels a day of oil (bopd).

The three producing wells, the Chisholm B 2, Nabors 1 and Cavu 1, were originally drilled to the Bromide formation at about 3,000ft.

The wells were reentered when companies in the area began testing deeper reservoirs.

The Chisholm B 2 and the Cavu 1 wells were then deepened to the Oil Creek formation at about 3,800ft.

CAVU plans to re-enter two additional wells to be renamed Cavu 2 and Cavu 3 in the next 60 days.

The development plan includes a re-work, chemical stimulation, new equipment and re-drilling them to the Arbuckle at about 4,000ft.

On the way, the McLish, Bromide and Oil Creek formations would be tested, the company said.

Cavu is running new gas production lines to connect to a gas transmission line for the estimated 300mcf of gas being produced on the Chisholm lease.

Based upon results of the three producers and other wells contiguous to the lease, Cavu anticipates the reworked Cavu 2 and Cavu 3 wells to have average initial production rates of between 30 and 40bopd combined.

The Chisholm lease project is located in an area that stretches from Paul’s Valley to the Texas/Oklahoma state line and covers approximately 290 square miles.