The company has a farm-in arrangement over the Wizard Lake field whereby it expects to increase its interest to 50% by the drilling of two additional wells at its cost.
Rex-2, which recently reached commercial production flow rates during testing, is the first of these wells, with Rex-3 being planned.
Rex-2 flow testing delivers impressive results
Last week, the Rex-2 well reached commercial production flow rates after seven days of testing.
As the Rex-2 well continued to clean up, a restricted peak rate of 865 barrels of oil equivalent per day (boepd) comprises 540 bbl/d oil and 2.0 mmscfpd of gas, was achieved over a three-hour period.
The final 24 hour flow rates exceeded flow rates from Rex-1 and oil continue to trend upwards, averaging 700 boepd during the final 24 hours of testing.
This compares to around 340 boepd for Rex-1.
The Rex prospect has potential for another 20+ follow up wells
The results of Rex-2 have confirmed the high quality of the reservoir and further delineated and extended the Wizard Lake Rex oil pool.
These results provide a strong basis to proceed with further Wizard development activity.
The Rex-2 well will be placed on production to existing facilities within a few days.