(Houston TX / 16th Oct 2019) We are pleased to give you an update on the recent operations for Raccoon Bend Field. Since we acquired the working interest in the field, we have initiated multiple operations to include the drilling new wells and the recompletion, work over, and activation of existing well bores. All of these activities and investment back into the field have 1) increased daily production and cashflow; and 2) increased reserve and asset value. In turn, the value of STORH is directly affected in a positive way.
Outlined below the operations and their respective results:
· Paine 14 recompletion and gravel pack just concluded from the C Sand. Production add expected of 10-15 BOPD.
· Paine 57 still producing 25 BOPD from DY 1 sand. This well has already paid out the investment from the secondary objectives. The main higher rate zones, Woodley and Paine Sands, remain up hole in the well for future recompletion.
· Woodley 92 well is to be recompleted in one of primary objectives next week which is the Paine ‘C’ sand. This completion should add 35 – 40 BOPD in production.
· Paine 58 well continues to make 35 BOPD out of Woodley Sand, which was a secondary deeper zone. There are two additional non primary zones up hole to be recompleted prior to getting to the main objectives.
· Paine 59 well had pay in the well in the DY1 Sands, however it was determined that the reserves would be better captured by the Paine 31, which was an inactive well. The Paine 31 was placed on gas lift in the DY 1 sand which is where we saw pay in the Paine 59 test well. It has been producing 25 -27 BOPD since reactivation, which is an add.
Currently Drilling New Well
We are currently drilling the McCasland River Oil Unit 1 well which is targeting the two Gutowsky Sands, Grawunder and UC 2 Sands. Expected TD of 4300’ MD should be reached by Friday of this week. Multiple objectives exist in this well as outlined above and if successful could add 75 BOPD or more of new production.
A fourth well is planned to be drilled before the end of the year which will be target several sands including a new objective which could potentially add significant reserves to the field and thus drive the STORH price up substantially.
Keeping in mind that production does decline over time, all of the above and future activations, workovers, recompletions and new drills will continue to add production to the already existing ~800 BOPD. This additional production as outlined above was the main component in the recent adjustment of the STORH price from .40-.48 EUR per share.
Raccoon Bend is a great example of a world class oil field given its long life, expanding resource and dozens of productive objectives. This asset provides a solid foundation to STORH as it now focuses on high impact projects like Plastics to Fuel and Mineral Recovery & Reclamation projects.