Armada Oil, Inc. (the “Company”)
), an oil and gas exploration and production company, announced today that it has met and exceeded its earlier estimate of up to a 20% increase in production through a recently completed a series of workovers and stimulation efforts on three wells in the Lake Hermitage Field (100% working interest) located in Plaquemines Parish, Louisiana. These workovers are part of a low cost, aggressive production enhancement program announced May 9, 2013. The positive results to date include production increases from the Company’s LLDSB #2, LLDSB #3 and LLDSB #20 wells.
The LLDSB #2 well, which had not had continuous production since 2010, was successfully re-perforated and stimulated in the P1 Sand at approximately 9,600 feet. The well tested at a rate of 68 BOPD (barrels of oil per day) and 233 MCFD (thousands of cubic feet per day).
The LLDSB #3 was successfully re-perforated in the Upper UL-4 Sand at approximately 12,300 feet to increase flow. The well tested at a rate of 86 BOPD and 88 MCFD, a significant improvement over the prior rate.
The LLDSB #20, which had been off line since August 2012 due to flow line and water lifting issues, was successfully re-perforated in the UL-1 Sand at approximately 10,055 feet. On a 12/64ths choke, the well flowed at a rate of 12 BOPD and 541 MCFD at a stabilized flowing tubing pressure of 600 psi. The Company’s technical team believes that the increase in pressures as a result of this operation will alleviate the lifting issues and allow for consistent production from this well.
The production enhancement program is designed to provide the Company with increased cash flow at a low cost of capital and is being funded with internal cash flow.
“Each of these operations went as planned and we are quite pleased with the results. Based on this data, we expect an overall increase in production from these three wells of 20% to 25%, which should be reflected in our 3
quarter results,” said Randy M. Griffin, CEO of Armada Oil, Inc. “Planning is underway for the next round of well enhancements and we expect to announce the commencement of those activities very soon.”
In addition, shareholders and investors should note that an “E” was added to the Company’s ticker symbol in error on July 8
because a regulatory agency incorrectly believed that a filing was not timely. In fact, the filing was not required and the “E” was immediately removed at the open of trading the following day. The Company has been and is current with all of its filing obligations.
About Armada Oil, Inc.
Armada Oil, Inc. (OTCBB: AOIL), headquartered in Dallas, Texas, is a growth-oriented oil and gas Exploration and Production (E&P) company with a focus on growing reserves and net asset value per share, primarily through the acquisition, development and enhancement of multiple onshore oil and natural gas producing properties as well as the development of highly diversified developmental drilling opportunities, both conventional and unconventional. The Company currently has producing oil properties in Plaquemines and Lafourche Parishes in Louisiana and in Young County, Texas. In addition, the Company has developmental properties in Garfield and Major Counties, OK and Wyoming County, NY and controls a strategic acreage position in southern Wyoming in the liquids-rich Niobrara Play.