Canadian Overseas Petroleum Limited (LON:COPL) has outlined how production will expand following the recent completion of the acquisition of US-focused Atomic.
“Beginning April 1, injection gas volumes (produced and make-up gas) are expected to increase dramatically, peaking in the fourth quarter of 2021”, said the London-listed group.
Purchased monthly make-up gas volumes will increase in April to 126,000 Mcf, from 15,600 Mcf in February, peaking at 200,000 Mcf in the fourth quarter
“This dramatic increase in purchased make-up gas volumes is due to the COPL’s strong balance sheet as a result of its equity and debt financings used to acquire Atomic and SWP.
Crude oil production should increase by year-end from the current 1,350 bbl./d due to the ramp-up in gas injection volumes, added the statement.
A total of 20 additional Production and Injection wells are planned to be drilled in 2022 and 2023 to balance the oil recovery from the field and maintain high production levels.
Atomic holds an operated interest in a large contiguous lease block in Converse County, Wyoming.
The company’s reservoir simulation, conducted by a third-party specialist reservoir engineering firm in January of this year, suggests a gross production target from the Barron Flats Unit of 7,000 bbl./d in 18 months time due to the increase in gas injection volumes alone.
This equates to a five-fold uplift on current production rates, COPL added.
Arthur Millholland, chief executive, said: “The acquisition of Atomic and its affiliate companies represents a game-changing acquisition for COPL.
“We now have a strong balance sheet, secure cash flow and are now well placed to deliver increased production and enhanced revenues, profitability and shareholder value – underpinned by increases in the oil price and quality of our new assets.”
COPL shares are currently suspended pending a relisting on London’s standard market.