Fox Petroleum has announced natural gas production from its Spears Gas Unit 2, Well 1 in the Gomez Field, in Pecos County, Texas, US. Initial test production is in the region of 2.5 million cubic feet per day, of which Fox Petroleum will take 22.5%, or over half a million cubic feet of gas per day.
The revenue stream from the well should generate over $1 million a year for Fox Petroleum. The company said that the development of this project represents a start to a longer-term program of drilling and workovers in this region and a realization of Fox Petroleum’s ambition to become an exploration and production company with a revenue stream in its first year of operation.
Stratco, the operating company on behalf of the group, was able to perforate a zone between 16,000 to 17,000 feet recently. After shutting in the well for pressure build overnight, the well came back on at an increased rate of 3,600 pounds per square inch. Production tubing has been run and connected downhole, the kill fluids have been displaced and the well has now been opened up again for production and the commercial sale of natural gas, the company said.
Richard Moore, CEO of Fox Petroleum, said: The well did not yield easily and only through the perseverance of the experienced crew under Tom, were we able to overcome the problems presented by removing a very stubborn tubing string left behind by the previous operator. This, plus the high winds and un-seasonal weather in the region, led to some delays but did not deter us from our objective, which has now been achieved.