Winstar Reports production resumption in Southern Tunisia
Friday, Feb 22, 2013CALGARY, Feb. 21, 2013 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) reports that the Company has resumed production, under normal operating conditions, at two of its 100% owned and operated Southern Tunisian production concessions ( Chouech Essaida and Ech Chouech) which, due to labour unrest and related safety plus security issues, had been shut in since January 16, 2013. The re-opening of two of Winstar's Southern Tunisian concessions (representing 75% to 80% of Winstar's total January 2013, deliverability) was done in coordination and, at times, under the close supervision of the relevant Tunisian authorities, both national and regional. Such authorities have provided Winstar with appropriate guarantees for normal operations, as demonstrated during the recent incident free re-opening, which began ar ound February 12, 2013.
Total Company production as of February 19, 2013 was approximately 900 net barrels of oil equivalent ('boepd'). Production is expected to rise to about 1,000 net boepd by February 22, 2013, and 1,250 net boepd during the week of February 25, 2013.
The January and February 2013, disruptions have delayed the work overs and recompletions of a number of Chouech Essaida Triassic oil wells. Two 100% owned and operated oil wells, Chouech Essaida Number 3 and Number 11 ('CS #3 and CS #11') are expected to add up to 325 net barrels of oil per day ('bopd') plus 200 net boepd of gas by early March 2013, when new downhole electrical pumps arrive and are installed. With the addition of CS #3 and CS #11 incremental production expected in early March, it is reasonable to project that the Company's total production would be approximate 1,775 net boepd then ,assuming no new mechanical issues or third party constraints.
The 100% owned and operated Chouech Essaida Silurian #10 ('CS Sil #10') was been successfully re-cemented and re-perforate over the Triassic oil zone, prior to the January 16, 2013 production shut in. The Triassic oil reservoir during short periods of time generated significant hydrocarbon shows, in early January, but subsequently failed to maintain natural flow to surface, because of pre re-cementing water invasion. It appears sustained surface pumping will be required to re-establish the virgin or not invaded portion of the oil reservoir. This process will begin in March and may take several weeks, if not more to complete.
Because of its location and related logistical issues, no date has been set, for resuming production at Winstar's third production facility in Southern Tunisian, the 100% owned and operated Sanrhar concession, which produced about 80 bopd prior the labour unrest.
As reported originally on July 3, 2012, the Company has retained FirstEnergy Capital LLP to explore and evaluate potential strategic alternatives with a view to enhancing shareholder value. This process is ongoing.
SOURCE Winstar Resources Ltd.
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