Borger, Texas — (Newsfile Corp. – February 22, 2018) Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) (“Molori” or “the Company”) is pleased to announce a commercial oil discovery on its acreage in Moore County, Texas.
The “Thompson 23-1R” well, operated by Molori Energy, is a northern step-out well drilled in December 2017 where Molori Energy holds a seventy five percent (75%) working interest via its Thompson 26 and Thompson T2 leases. These leases directly adjoin to leases owned and operated by Adams Affiliates of Tulsa, OK, a successful operator and producer in the Red Cave trend. The Thompson 23-1R well is directly north of the active development area of Adams Affiliates.
As announced previously, he 23-1R well was completed on January 22nd, and was fractured with over 250,000 lbs sand and 340,000 gallons of slick water. The well has responded and produced on February 18th at 22 boepd*, 35 mcfd, and 61 bwpd for a blended production rate of approximately 28 boepd. The bulk of the water is load water which is consistently dropping with time, and the oil rate is steadily increasing with time. Peak production is expected within the next ten to fourteen days, following which Molori will be providing definitive results.
Furthermore, we have estimated that the reservoir pressure is 420 psia, which is consistent with original reservoir pressure in this area, and this location is not drained by offset production. The well log shows 100% oil pay with no gas cap. The log parameters are 37 feet of pay with 11.6% porosity with 39.8% Swi (Initial Water Saturation). These log results are very consistent with the near offset wells drilled recently by Adams Affiliates.
Commented Joel Dumaresq, CEO of Molori “We are extremely pleased with the ‘discovery’ and the initial results of our Thompson 23-1R well and frac into the Red Cave. The oil to water ratio continues to improve daily as we recover the water injected with the frac, and as a result we are experiencing daily increases in production.”
Molori is expediting the installation of additional production tanks and moving forward with the continued development of its acreage in the area.
* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.
Molori’s operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.
For further information, please visit the Company’s website at www.molorienergy.com or contact
Molori Energy Inc.