The Spring Hill no 1 well had three oil zones and was completed in the upper lobe of the Stewart A Sand, and put on production in August 2009. An east offset, the Spring Hill no 2, was drilled and put on production in the 4600ft sand in November 2009.
The no 1 and no 2 wells, combined, have a stabilized production rate of 60-70 barrels of oil per day with the main oil zone in the no 1 well, the Stewart A Sand, still behind pipe.
KFG Petroleum has approximately 4,100 acres of leases in the area and owns a 100% working interest (79.16% net) in the Spring Hill wells and in this offset location reverting to a 74.9% working interest after payout of all drilling, seismic, land, exploration, development, taxes, and operating expenses.
