Australian oil and gas exploration company Red Sky Energy announced that production at the Gold Nugget gas field in the Wind River Basin in Wyoming has been improved from 150 million cubic feet per day (mcfpd) to between 350-1600 mcfpd.
Red Sky said the improved production was down to a number of technical improvements at Well #1-23, which the company expects to result in generating revenue of between A$50,000 – A$100,000 per month.
“Pursuant to the term sheet entered into by the Company in October 2015 a US$100,000 deposit was spent on optimising the existing well,” the company said in a statement to the ASX.
“This has resulted in increased production of between 350-1600 mcfpd of gas, expected to settle at a rate of between 500 and 1,000 mcfpd, which will generate revenues of between A$600,000 – $1.2 million per annum. This production rate makes the Gold Nugget a profitable gas field.”
Gold Nugget is one of the largest gas producing basins in the USA with a discovery well that has historically produced 150 mcfpd of gas and 5 barrels of oil per day.
According to Red Sky, wells at Gold Nugget can be drilled at 5 acre spacing’s, with each well expected to contain between 2-5BCF of gas.
“This is an excellent result and exceeded our expectations. This asset further demonstrates the Company’s ability to identify assets which are profitable in this environment but contain significant in ground reserves providing substantial leverage to rising gas prices,” said Managing Director Clinton Carey.
“The Company will continue to assess how best to develop the asset most likely to be through joint venture.”