Vanguard Energy Corp. (OTCQX:VNGE) announced that it paid about $2.1 million to drill and complete three new oil wells at the Batson Dome Field in Southeast Texas. Wells from that field experience a decline that is slow and gradual, meaning their rate of production is predictable, the company stated.
As quoted in the press release:
Mr. Warren Dillard, President of Vanguard Energy, said, “We are very pleased with the initial results of this new drilling.” The wells were financed with a portion of the proceeds from the Company’s recently completed convertible note financing. The early production rates on the wells are on par with expectations and well above target production standards set by previous Batson Dome wells of approximately 20 barrels of oil per day per well.
Exact production rates will vary from well to well because of the nature of the field, which is highly fractured being on top of a salt dome. Also, the wells are producing from pay zones that are different in size and ultimate recovery rates. The company’s wells are conventional, vertically drilled wells with no laterals and require no fracing. They produce oil only, no natural gas.