Well Workover Progress
Since the sale of a 25% working interest to Molori in June of 2016, Ponderosa has re-worked over 75 wells on the leases it shares with Molori, and grown gross production from 40 BOEPD to approximately 400 BOEPD. At the same time that it has been growing production, Ponderosa has consistently lowered lifting costs by introducing more efficient operating procedures and pursuing more competitive tendering techniques.
The Panhandle is littered with thousands of idle well-bores which have been shut-in or neglected due to the current commodity price environment. Molori, along with Ponderosa, has been taking advantage of this scenario by selectively acquiring assets and leasing areas where prices have been deeply discounted.
On the Panhandle leases it presently shares with Molori, Ponderosa owns a total of 367 well-bores, which are scheduled to be re-worked and brought back into production. It is anticipated that as these wells are re-worked and brought back into production, the joint venture's oil and gas production and reserves will continue to grow significantly.
Currently, Molori/Ponderosa are producing approximately 400 BOEPD or 2.4 BOEPD per well, from 165 wellbores, while maintaining an LOE of less than $20/BOE.
Ponderosa presently has several re-work rigs conducting optimization operations on the non-producing well-bores. To date, re-completed wells have produced on average, 2.5-4.0 BOEPD, and decline at a rate below 4% year-over-year.