Midnight Oil Exploration Ltd. enjoyed an active and successful first quarter of 2008. The company was active on the drilling and construction side on our gas prospects in the Peace River Arch and light oil project area at Red Earth. It enjoyed 100% success in our drilling results and were able to tie-in a number of our gas wells drilled during the winter. It also completed construction of our Red Earth water injection facilities that will add proven reserves, increase production and reduce operating costs for Midnight Oil Exploration for the balance of the year.
A significant strength of Midnight Oil Exploration is the breadth and depth of our light oil and natural gas prospect inventory combined with the skill and expertise of our high-end technical team. As disclosed at year end, we planned to shift our investments from light oil prospects towards our natural gas prospects.
The ground work began earlier with comparison and analysis of similar Basin Centered Gas accumulations pursued and developed as resource plays in the United States of America. By comparison, the "tight" gas sands of the Deep Basin are of a more conventional nature with higher porosity and permabilities and similarly large in situ reserve estimates.
In our Deep Basin area, the drilled three gross (2.5 net) wells, pipelined and tied-in a recent discovery but more significantly expanded land and prospect inventory base in this high potential multi-zone area.
A significant strength of Midnight Oil Exploration is the breadth and depth of our light oil and natural gas prospect inventory combined with the skill and expertise of our high-end technical team. As disclosed at year end, we planned to shift our investments from light oil prospects towards our natural gas prospects.
The ground work began earlier with comparison and analysis of similar Basin Centered Gas accumulations pursued and developed as resource plays in the United States of America. By comparison, the "tight" gas sands of the Deep Basin are of a more conventional nature with higher porosity and permabilities and similarly large in situ reserve estimates.In our Deep Basin area, the drilled three gross (2.5 net) wells, pipelined and tied-in a recent discovery but more significantly expanded land and prospect inventory base in this high potential multi-zone area.
Source: Scandinavian Oil & Gas
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