Consolidated Ramrod Gold Corp. Announces Significant Oil and Gas Production in Texas

Strategic Insights -

Consolidated Ramrod Gold Corp. has reported a significant oil and gas production milestone in Texas, with its Kocian Unit No. 1 well producing 3,521 barrels of 42-degree API crude oil and 650 MCF of gas per day. The well, drilled in May 1995, is currently producing at a rate of 235 BOPD and 650 MCF of gas per day. This production is expected to supplement the company's substantial income from its recently acquired producing fields in the Oriente Region of Ecuador.

Key Takeaways:

  • Consolidated Ramrod Gold Corp. has announced significant oil and gas production from its Kocian Unit No. 1 well in Fayette County, Texas.
  • The well has produced 3,521 barrels of 42-degree API crude oil and 650 MCF of gas per day.
  • The well was drilled in May 1995, to a depth of 9,757 feet, and encountered numerous oil and gas shows with virgin bottom hole pressures.
  • The company has contracted with GPM Gas Services Co. and EOTT Energy to deliver and sell the gas and purchase the oil, respectively.
  • Commercial sales of natural gas commenced July 14, 1995, and the company expects to bring additional production on-line as its Ramrod Oil and Gas subsidiary continues its development activities.
  • The production of the Kocian No. 1 well is the first horizontal well to be drilled in the 3,300-acre block held by Ramrod.
  • The company has already selected four additional sites as having good prospects in both the upper and lower members of the formation.

Statistics:

  • 3,521 barrels of oil produced from the Kocian No. 1 well.
  • 650 MCF of gas produced from the Kocian No. 1 well.
  • 235 BOPD from the Kocian No. 1 well.
  • 4,750 BOPD produced from Ramrod's oil production and exploration concessions in the Oriente Region of Ecuador.
  • $20 million (U.S.) paid by Ramrod for the acquisition of City Investing Co. Ltd. in Ecuador.
  • 3,300 acres in the block held by Ramrod in Fayette County, Texas.

Sources:

  • Consolidated Ramrod Gold Corp. press release, July 17, 1995.
  • The Financial Relations Board Inc.