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Fremont exceeds foreseen results at Colorado well

Energy
ASX:FPL
08 October 2019 23:00 (AEST)

At Fremont Petroleum’s Amerigo Vespucci Well in Colorado, U.S., initial production has exceeded the company’s expectations.

Testing estimates the well will produce 273 barrels of oil per day.

According to the company, the well is producing “hot, high quality gas,” which possesses similarities to historically successful projects.

Previous drilling at its Powell prospect resulted in an estimated 220 barrels of oil per day, therefore, the new target has more potential.

“The Vespucci result is a great outcome and the boost to revenue is excellent,” Fremont’s Managing Director and CEO Timothy B. Hart said.

A permit is currently pending which will launch the well into permanent production. It is expected this will begin this month.

“Through this drill program, and following the result from the Powell well, our field is starting to attract a lot of interest from the US oil & gas industry,”

Going forward, the company informed shareholders it will continue to pursue new targets.

Timothy said: “Our focus now turns to some more highly prospective oil targets, and we will be aggressively going after these as soon as next month.”

Fremont’s share price has remained flat today, currently sitting at 0.9 cents apiece, as of 3:21 pm AEDT.

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