(MENAFN - ProactiveInvestors - Australia) Otis Energy (ASX:OTE) has stabilised the Test well-2 at 25 barrels of oil and 275 million cubic feet of gas per day at its Comanche project with both test wells 1 & 2 adding to the revenue stream.
A third well is planned for the first quarter of 2013 with potential for multiple infill wells.
The Sloan-1 H well, which is the second test well has stabilised at flow rates of about 25 bpd and 275 MCFPD of gas or 70 barrels of oil equivalent per day.
A workover rig has been commissioned to remove any blockage that may be potentially inhibiting the flow of fluids to surface.
Otis has started receiving revenue cheques from both Test Wells-1 & 2, with prices pegged at WTI prices and natural gas priced at premium to spot prices.
Otis has also undertaken a technical review of its well completion procedure hiring Houston-based NuTech.
NuTech focussed specifically on the fracture stimulation size, fracture fluid makeup and well orientation to enhance penetration of the micro fracturing present in the Marble Falls Limestone.
NuTech has designed an optimised completion plan for the planned third well at the Comanche Project with an increase in fracture stimulation size, changes to fluid properties and a slight change in lateral well direction to enhance fracture penetration.
Otis has working interest in other projects including the Avalanche project, and Catahoula Lake project in Louisiana, the Charro and Sombrero projects in New Mexico and Stagecoach in Texas.