Based on testing, the well is estimated to be able to produce in the 250,000 to 300,000 cubic feet per day range.
The Kelsey well in which Forest Gate owns a 38% interest, represents Forest Gate’s third joint venture agreement with Emerald Bay Energy Inc.
Our strategy of increasing oil and gas production in Alberta continues to reap rewards, said Michael Judson, Chairman, President and CEO of Forest Gate. Kelsey represents yet another success and proudly joins the ranks along side Ferrybank and Nevis of Forest Gate’s expanding base of revenue-generating assets.
In other production news, Forest Gate’s working interest in the Ferrybank well has been adjusted to 41.3% from 47.5%. This is a result of Ferrybank being re-classified as an oil well by the province of Alberta’s Energy Resources Conservation Board (ERCB).
Joint venture partner Canadian Natural Resources (CNRL) owns the mineral rights (Petroleum and Natural Gas) in the North East quarter of section 23 where Ferrybank was drilled. The well was initially licensed and drilled as a ‘gas well’ by Forest Gate and its partners.
CNRL has increased its working interest by an additional 12.5%, bringing their ownership to 16.667% of the 16-23 Ferrybank well. A new pooling agreement for ‘petroleum’ has been completed with CNRL. The original natural gas pooling agreement remains unchanged. CNRL must also pay for the additional 12.5% they earned in the 16-23 well and each partner in the well will be reimbursed proportionately.
