JD Neuhaus

Deutsche Rohstoff AG: Tekton Energy commences production from first horizontal well

Deutsche Rohstoff AG’s US-Oil subsidiary Tekton Energy recently reported that it has already started producing from its first horizontal well, two weeks earlier than scheduled.

The well was drilled in March 2013 and completed during the last four weeks. It was fraced last Friday and connected to the infrastructure over the weekend. The well already produced oil during the first few days. Usually, after the fracing a period of up to 2 weeks is needed to pump out the water that was injected for the frac. The production from the first well was halted until the second horizontal well will be completed. According to the current schedule, this will be the case some time next week. After this step, both wells will start producing.

The first two wells are part of Tekton’s overall plan to develop the full potential of its acreage of currently 2,300 acres. Tekton expects to drill up to 80 gross/60 net horizontal wells on its leases. As of today, over 60 of these wells have been permitted through State and local authorities. Comparable horizontal wells are reported to define reserves of 325,000 to 350,000 Barrels of Oil Equivalent each.

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