The oil to water ratio is expected to improve over the next several days as some load water is being produced during initial production.
Titan said that potential to increase storage tank and flowline capacity to handle higher oil production is currently being considered.
Titan Energy’s US managing partner, John McKnight said, "This is an excellent result for Titan Energy and its shareholders. High value, light oil from JT Reese #S2 is already being loaded into tankers for trucking to local refineries, and will bring very strong cash flow into the Company."
The company said that while first shipments of oil have begun from the new well, strong cashflow is anticipated.
Planning is underway for aggressive follow up drilling program.
The start-up of production of oil from the JT Reese #S2 discovery was initially delayed due to difficulties in completing the gravel pack due to the initial flows from the well.
After the first attempt to complete the gravel pack in the well was halted. The well was then flushed and prepared for production testing.
Titan expects to produce the well with a smaller choke to restrict production to a rate of approximately 300 barrels of liquids per day, while it ascertains whether it will require additional production handling capacity to be installed in the field.
