Wordsworth (past project)
The first well in our Wordsworth partnership with Texalta is producing the equivalent of 200 barrels of oil per day.
In May 2006, Delta Oil & Gas entered into a farm-in agreement with Texalta Petroleum Ltd., a well-established operator in southeast Saskatchewan, Canada. The company has agreed to participate for 15% before payout and 7.5% after payout in the first of a proposed four-well horizontal oil drilling program in the Wordsworth area. Thereafter, each additional well earns a 15% working interest.
This area is known for prolific oil reserves in numerous Mississippian Alida pools where horizontal wells can prove initial production rates up to 500 barrels of oil per day. Payout of one well investment of approximately $1 million could be only a few months, with up to 10 years of additional production life still remaining.
In June 2006, the first well was drilled to a total horizontal depth of 6,670 feet. The drilling resulted in an extraordinary discovery for the company: a new Alida oil pool at East Wordsworth, initially producing the equivalent of 456 barrels of oil per day.
The well was completed as a flowing oil well and has been producing in the range of 200 barrels of oil per day and between 50,000 and 100,000 cubic feet of natural gas per day from a pay zone estimated to be approximately 900 feet.
On April 10, 2007, the Company entered into an agreement with Petrex Energy Ltd., for a participation and Farm-out agreement where the Company would participate for 15% gross working interest before payout (BPO) and 7.5% gross working interest after pay out (APO) in a proposed four well horizontal drilling program in the Wordsworth area in Southeast Saskatchewan, Canada. The well, HZ 1C2-23, was drilled in September 2008 and started production from November 2008. In June 2009, the Company joined the drilling of a new well, HZ 1B1-23/3B8, and paid CAD$49,826 for 5% working interest.
On June 1, 2009, the Company sold 2.5% of its 7.5% Working Interest for CAD$250,000.
This prospect including all surrounding lands was sold on July 1, 2010 for total proceeds of CAD$750,000.
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