This brings to a total of seven wells producing in section 18-48-1 W4, in which Diaz holds a 50% working interest, Diaz said.
Diaz anticipates taking over as operator in July, 2010 at which time it will update the production from the three new wells. It plans to drill up to five more horizontal heavy oil wells in section 18-48-1 W4 in 2010.
In addition to section 18-48-1W4, Diaz has acquired an 80% working interest in 2000 gross acres in the Lloydminster area, in close proximity to its current development.
A key parcel, comprised of 400 acres, is located in the north and eastern part of section 7-48-1 W4, on which two older abandoned wells show bypassed oil pay based on electric log analysis. This parcel is situated immediately south of a Diaz operated well, 2-18-48-1 W4 which is currently producing at approximately 65 barrels of oil per day.
