Phase I of the Orbit Petroleum Partnership Joint Venture nearing completion
Orbit has almost completed Phase I of well activation for the Orbit Petroleum Partnership Joint Venture according to Mike Hughes, Production Superintendent for Orbit Petroleum, Inc.
This program was begun in late 2005 with the drilling of the test well, the James McFarland A#5 to confirm the Company’s prior test of commercial viability of the deeper pay zones of the San Andreas formation, specifically, zones P3 and P4. Based on the positive results from the James McFarland A#5, 25 inactive and developmental wells were added to the program. The focus of the program was to fully equip, deepen, fracture and stimulate all the wells. This program was divided in to two Phases, I to equip and activate and II to deepen, fracture and stimulate. By dividing the program in Phases the hope was to insure the selected wells could first produce from the current well bore and secondly, was also a candidate for producing from the deeper zones. Phase I is nearing completion with 21 of the 25 wells equipped and active. Production at this time is only minimal per well and averages roughly 2 BOPD per well or 45 to 50 BOPD in total as the main production zones have note yet been reached. All the wells should be on line by the end of the year. Phase II is currently scheduled to begin in January 2007. Once all the wells are deepened the expectation is that each well should produce on average 7 to 10 BOPD per day or roughly 250 BOPD in total from the San Andreas zones.
Orbit Petroleum, Inc. is the owner of 3,500 acres in Chavez and Roosevelt Counties, New Mexico and 1,072 acres in Matagorda County, Texas. In New Mexico, Orbit is the operator of 86 oil and gas wells located in the Chaveroo Field. In Texas, Orbit holds a majority working interest in 8 gas wells located in the Live Oak Bayou-Hawkins Ranch Field.