Nu-Oil said that the Department of Natural Resources (DNR) has approved the program for the production test at its subsidiary Enegi Oil’s Garden Hill site in western Newfoundland, Canada.
Enegi is the Company’s wholly owned subsidiary.
PVF Energy Services (“PVF”) is completing the clean-up of the well-tubing, undertaking any maintenance required to site facilities and performing routine pre-flow checks. The test, which is expected to last between 30 and 90 days, will begin when this preparation is concluded.
Under the Production Sharing Agreement announced on 31 January 2017 all operations on site are undertaken and financed by PVF.
The Company looks forward the Test, which will be a significant milestone towards achieving the objective of restoring production from the PAP#1-ST#3 well (the “Well”).
Nu-Oil chairman Alan Minty said: “PL2002-01(A) is leased to our subsidiary Enegi Oil Inc., which is working with PVF as they progress operations at Garden Hill. We believe that the field has significant value for the Company.
“We look forward to the production test, the results of which will be used by PVF as they finalise their plans for the wider development of the field. We continue our negotiations with PVF to agree a farm-out and we look forward to updating the market as and when an agreement is concluded.”
Source: Company Press Release.