Northern Petroleum has boosted production from its Rainbow assets to 500 barrels of oil per day.
The firm, which completed the acquisitionof 28,000 acres of mineral leases, wells, tank batteries and processing facilities, in the Rainbow area of north west Alberta, Canada earlier this year, plans on tying-in three more wells.
Chief executive Keith Bush said: “The company has achieved its initial goal of increasing production from the Rainbow assets to more than 400 barrels of oil per day. This production, combined with the rise in oil price since February, is providing material monthly revenue and cashflow. The next step for the Company is to increase production further and not only cover group costs, but also create net operating cashflow for future investment.
“The Rainbow assets have a broad range of development opportunities, including well workovers and sidetracks to increase production and pipeline and equipment enhancements, which can reduce operating costs and increase netback per barrel. The key aspect of these development opportunities is that they are relatively low risk and require relatively low levels of capital investment.”
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