(MENAFN- ProactiveInvestors - Australia) Titan Energy (ASX: TTE) is confident of further improving production at its Allen Dome oil field in Texas, where it has already increased production seven fold since March 2012.
Production currently stands at 80 barrels of oil per day, up from 12bpd when Titan first acquired the project.
Importantly, the company has gained a much better understanding of the sands it wants to target and locations for further drilling from the wells it has drilled and a recent seismic survey acquired over this section of the Allen Dome.
These include locations where little or no historic drilling has been done but where the sands show good potential.
Titan has successfully established a currently restricted, initial flow of oil from co-mingled zones in the Reese-2a well following recent workover and re-completion operations.
It remains confident that flow rates can be increased over the next few weeks as the 2600' sand at this location is thicker than at the Reese-5 site.
Production at the Reese-5, its initial workover well is also stabilising though Titan has elected to restrict flow to make the most of the sands at this location.
Titan currently holds a 84% working interest in both wells.
It is also aiming to spud its first Allen Dome exploration well, Resse-10, in the next couple of weeks.
Reese-10 will target multiple zones, each of which has the potential of producing 50 barrels of oil per day or more.
Preparations are also well advanced for two follow up exploration wells, one on Allen Dome South and another on Allen Dome North.
These wells will likely test the 1400' sand which produced oil shows in the Reese-4c well.
Titan Energy is also well advanced with its preparations for the drilling of two, low cost, "caprock" test wells on the southern flank of the Allen Dome.
Oil production from the dome flanks began in the 1920's with cumulative oil production of over 800,000 barrels to date from less than 20 wells. Less than 50 wells have been drilled on the dome flanks, all of which were located utilising subsurface well information.
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