PNP Petroleum Provides Operational Update
SAN ANTONIO, TX. January 1, 2013. PNP Petroleum I L.P. (“PNP”) today provided the following update of its production and operations and reported that drilling and capital expenditures under its FY 2013 Capital Budget are on schedule.
PNP has pending projects in which the capital required is over $100 MM. Currently, PNP is in negotiations for completing the capital requirements for FY 2013 Capital Budget.
This field has been an active NEOR project for over four years. Nitrogen injection, which has been shut down due to injection well issues is slated to begin again in February 2013. Current production is only from one well (#8) and a program to change the producing capabilities of #8, #3, #6 and #9 are in process. PNP Petroleum is anticipating rates in excess of 80 bopd from this field when nitrogen is re-started. Current production is 12 bopd.
PNP Petroleum has completed is plan for development for this field. Phase I has been completed. Five wells have been re-entered and currently two wells are producing in advance of the Nitrogen Injection. Current production is approximately 3-4 bopd and 45 bwpd. Nitrogen injection began in May 2012 and over 300 MMscf of nitrogen has been injected into the field. Wells in the field have all experienced pressure increases. Once the BHP has increased to a specific level, production testing will begin.
Chapman Abbott Field:
PNP Petroleum sold this property in 2012.
Pearsall Field Project
PNP Petroleum has completed the purchase of 23 wells on four leases covering 5000 acres of leases in Frio and Zavala Counties, Texas. There are 16 wells that are fully equipped and a central SWD facility. The field is currently shut in awaiting the pending sale.
PNP Petroleum is currently completing engineering on a number of EOR candidate fields and projects. It is anticipated that one or more will be leased or purchased before the end of 2013.
Existing Property Purchases:
PNP Petroleum is in the process of acquiring a number of existing shut in wells, leases with existing wells and producing properties for the purposes of re-establishing oil and gas production through simple production methods.