Petrol Oil and Gas Receives Operational Permits for Two New Salt Water Disposal Wells
September 28 , 2006Petrol Oil and Gas, Inc., an independent oil and gas company with operations in Kansas and Missouri, received approval from the Kansas Corporation Commission (KCC) to operate two new salt water disposal (SWD) wells on its Coal Creek Project. While a number of Petrol's Coal Creek coal bed methane (CBM) wells have been in various stages of de-watering in recent months, these two new SWD wells have now doubled the previous daily water disposal capacity and will allow the de-watering of wells to accelerate significantly.
Petrol has 43 gas production wells on its 92,000 gross-acre Coal Creek Project. Initial water production rates from the CBM wells in this development area were higher than anticipated, forcing the original 3 SWD wells to operate at capacity and limiting the number of production wells that could be de-watered simultaneously. With the KCC approval to operate 2 new SWD wells, Petrol's daily water disposal capacity has doubled during the past two days that they became operational, which will allow all 43 production wells in Coal Creek to de-water faster and more efficiently. De-watering of coal beds is a standard and essential part of any CBM well development program that allows gas production to increase as the water is pumped out of the coals. Previous Kansas Geological Survey publications note that CBM wells in SE Kansas come on line with low gas production rates that increase and peak, on average, within 6 to 12 months as a result of the de-watering process.
"Approval by the state to operate our two new SWD wells will allow Petrol to accelerate the de-watering of all existing Coal Creek CBM wells, which we believe will significantly enhance gas production from the project in coming months," stated Paul Branagan, Chief Executive Officer of Petrol. "During the past two months we have already seen gas production rates from Coal Creek increase by more than 110%, indicating that despite limited water disposal capacity prior to the approval of our new SWD wells, the early stages of de-watering are beginning to have a very positive effect on gas production. In addition, well tests have identified a couple of intervals that were producing water at high rates and we have subsequently 'plugged off' these intervals, allowing the remaining 8 to 10 coal beds to de-water more efficiently."
Petrol holds a 100% working interest (WI) and an average 80% Net Revenue Interest (NRI) in the Coal Creek Project. On a long-term basis, Petrol believes the Coal Creek Project has the potential to support approximately 550 producing gas wells.
Kansas City Web Design
Kansas City Web Development
Kansas City Custom web design
kansas web page design