Lots of gas! Last week we shut in the 1302-H well because it was making significantly more gas than the first week we brought it on line. The gas separator on the downhole pump is working well and is sending the separated gas up the casing however the volume has grown to the point that we can no longer vent (cold flare) it off. Operators are typically are allowed a period of time from new completions to deal with the gas. We were hopeful that this was a "gas cap" which would eventually drop off as the fluid production increases however this has not been the case. We are working to get a permanent flare permit which will allow us to burn the produced gas then we can resume full time production on the well. In the meantime we will run it intermittently to make some production. In evaluating our field, it appears that the upper Tight Caddo section may have substantial gas reserves in place. While we do not have a pipeline connection to sell the gas (15 miles away), we have visited with a company that converts natural gas into liquid with portable trucks and they seemed interested in looking at our project. Perhaps there is some potential to capitalize on this but it has yet to be seen. In other news, we are getting closer to making a decision on the next well in the workover program which we may undertake while we gear up to drill the new horizontal well. More on this to come soon. Cheers!
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