Current Activities
Latest Announcement: January 22, 2010
Steaming Progress
TEG continued with a field-wide cyclic steaming program that began in mid-September. TEG USA is currently steaming its eighth well since that time. TEG intended to steam an average of two wells per month through 2010 and is remaining close to that schedule. The results, detailed in the chart below show an initial gain after steaming equivalent to a greater than four times increase over baseline production in the month following the steam-soak cycle. The well production returns to near baseline after three to four months of production. TEG has attempted two slightly larger (8,000 bbl) steam injections as of late in an effort to determine if larger amounts of steam injection will appreciably extend the life of the increased production cycle. Production data will be collected over the first three months of 2010 on these wells for this determination. Management continues to be encouraged by the results thus far.
WELL SERVICE
TEG will be repairing the Hartje #16, the first of three wells that suffered from corrosive liner failures. Repairs are to begin during the first week in February, 2010 following the manufacture of a corrosion resistant (all stainless steel) liner for the new completion. We are anxious to get this well back on production.
Results of the fluorescein dye tracer study indicated no communication between the produced water injection wells and the oil production wells operating at this time. These result exclude recirculated water as a contributing cause to corrosion issues. TEG continues to monitor the produced water for the fluorescent tracers with UV lamps and daily samples. TEG has already initiated steps in corrosion treatment of the wells and tanks and with these results, will be adding additional measures to reduce corrosive activity. Once the old liner is pulled out during the repair of the Hartje #16 well, samples can be sent to the laboratory for further analysis on the source specifics of the corrosion (CO2, bacteria types, etc.)
PRODUCTION
TEG USA produced 4,156 BO and 4,764 BO for the months of November and December, 2009, respectively. These resulted in gross revenues of $232,500 and $300,326, respectively received for oil shipped. Production for the month of January, 2010 has averaged 142 BOPD through January 19th with expectations of production increases by mid-February when the Hartje #16 well repair is complete. Additionally, the Hartje # 18 has now been returned to production after steaming and is in the process of contributing increasing oil rates. Production due to steaming and repairs should return the Tapia Field to approximately 200 BOPD rate sometime in February.
Our projections from last year had estimated a rate of 209 BOPD (within 5%).
IMPROVEMENTS
TEG will be completing the Core Steam Piping project by February 3rd. Piping includes gas (fuel), water supply, and steam injection lines, as well as proper valves and fittings. At this stage, all wells in the core of the field will be able to be steamed from the four steam generator locations on the Snow (1), Yule (1) and Hartje (2) leases. Service to the single Lackie lease well and some currently shut-in wells on the south flank of the field (Hartje) will be added later in 2010.
Tapia Steam Generator shown here with newly installed roof for weather protection.
Protective curtains can be hung on the perimeter of the roof for further protection during service downtime.