CARSON CITY, Nev., May 14, 2012 /PRNewswire/ -- Drake Gold Resources (OTC Markets: DKGR) is pleased to announce a production and development update for its Pennsylvania oil & gas project in Venango County.
Drake's six leases are producing an average of 17.2 barrels of oil per day (BOPD). The Glover lease is the most active one and, consequently, is initially targeted for the first of the rework and treatment program. Production will vary on each lease depending on such factors as the weather; down time due to reworks and treatment; and various other factors which impacts the daily output.
Each of these wells once reworked and treated historically, will produce between 1 and 5 BOPD. Management is using conservative estimates on these leases with expectations of reworking / treating approximately 100 wells. In addition, Management feels that the wells will have a median production of 1.5 BOPD which does not include the in-field drilling that may occur in the future.
Well-treatment professional and field advisor, Rick Tallini, has obtained the acid and chemical components required to treat the first two wells on the Glover Lease which are #4 and #14. This has been scheduled for the middle of this week. The treatment process requires oil that has been produced thus far and stored in tanks to be mixed with the treatment components. This formula will subsequently be injected into the wells followed by the wells being shut-in for a week. The treatment will then remove the brine water mineralization and paraffin build-up down the well bore which drastically improves oil production.
Field operator, Chris Repansky, is pumping the current 10 producing wells on the Glover Lease on a predetermined schedule. The remaining 8 wells on this lease are set to be reworked so as to bring them back into production and prepared for treatment. Chris will begin the reworks on the wells #2 and #3 once the required equipment arrives on site.
With production and development on Drake's first producing project coming to fruition, management would like to invite investors and shareholders to visit the project on a corporate field trip. An exact date will be determined and released based on the development schedule and expected weather conditions. Please contact investor relations if you would like to attend.
For any inquires please contact Drake's Investor Relations at phone: 530-405-3547 or email: IR@Drakegold.com.
Please read the Forward Looking Statements & Risk Factors: http://DrakeGold.com/Risk_Factors
SOURCE Drake Gold Resources
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