Lexaria Bioscience Corp (LEXX)

[confusedtrader]

News on oil assets.

Well PPF-12-7 was drilled in December 2013 but was never put into production due to seasonal delays. Lexaria is pleased to report that field work is currently underway with the goal of placing this well into production as soon as possible. Unless there are unexpected complications, this new well is expected to be in production and cash-flowing within roughly 30 days.

The PPF-12-7 sidewall core analysis indicated 19-20 feet (true vertical depth) of oil bearing pay. Oil and yellow fluorescence was encountered with recovered oil samples grading as high as 33 API. Permeability was very high across the entire sampled area, ranging from 3,100 millidarcies to as high as 4,750 millidarcies. For comparison, sand has a permeability of approx. 1,000 millidarcies. Lexaria's technical consultants believe the high permeability could be indicative of a positive flow test.

Work is now underway to finish completion of the well and install production equipment and flow lines. A new production facility is planned as part of the overall 12-7 completion process that is separate from the existing production facility that handles production from the pre-existing four Belmont Lake wells. The new production facility will require shorter flow lines, is topographically higher, and less prone to seasonal high water fluctuations, which together should lead to more efficient and reliable full-year production.

More information, including eventual flow test results, will be released when available. Griffin & Griffin Exploration, LLC is the operator of the well which was drilled in Section 41, Township 2 North – Range 4 West of Wilkinson Country, Mississippi.

Lexaria retains a 42% working interest in the producing 12-1 and 12-3 wells; a 50% working interest in the suspended 12-4 and 12-5 wells; and a 13.3% working interest in the 12-7 well. Lexaria is actively reviewing all possible ways of maximizing value from the Belmont Lake oil field assets.


https://finance.yahoo.com/news/progress-lexarias-belmont-lake-oil-123000182.html