The A-14XD well, which had a rate of production in the second quarter of approximately 1,510 barrels of oil per day (bopd) and averaged approximately 1,400 bopd during June, was shut-in on July 12, 2010. The EWT and gas flaring permits are valid for six months and include limits on the amount of gas that can be flared during that period.
The company said that it believes that the allocated amount of gas to be flared under the permit should allow the well to be produced under the same conditions as before, for most, if not all, the permitted six month period.
The company intends to request an additional EWT period in due time to allow for the well to stay open until the appropriate gas reinjection equipment is commissioned.
The company is already conducting the initial engineering study on the Albacora field to assess the equipment needs to inject the associated gas and transit the field into commercial production in order to minimize potential future production interruptions due to EWT regulations.
In addition, the company is awaiting a decision from the ministry regarding its previously submitted application for EWT permits for the six wells located in its Corvina field.
