Orion is an existing gas field that was drilled in the early 1980's. The field was abandoned early on in its producing life due to high H2S content. Higher gas prices and new technology made the exploitation of this asset economic and Orion 36, a replacement well, was drilled in early 2007, encountering 122 feet of gas bearing pay. President installed H2S processing equipment and other facilities designed to be able to handle rates of up to 6 mmcfd. These facilities cost some $4 million of capital plus leasing costs of around $30,000 per month. The well came on-stream in August 2007 with gas sales to local utility CMS, and gas production increased steadily to achieve a peak rate of over 6 mmcfd in August 2008. Production then steadily declined from this peak level, and the Company’s interest in the well was sold to its partner Wellmaster with effect from 10 June 2009 .
Orion monthly production
|
Gross Interest |
|
Net Interest |
|
|
gas peak rate mmcf/d |
gas mmcf |
|
NGL bbl |
|
gas
mmcf |
|
NGL bbl |
|
boe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jan-09 |
3.67 |
94.7 |
|
1,985 |
|
51.7 |
|
1,089 |
|
9,700 |
|
Feb-09 |
2.95 |
70.9 |
|
1,671 |
|
38.7 |
|
912 |
|
7,362 |
|
Mar-09 |
2.59 |
71.7 |
|
2,035 |
|
39.2 |
|
1,111 |
|
7,636 |
|
Apr-09 |
2.12 |
56.4 |
|
1,531 |
|
30.8 |
|
836 |
|
5,971 |
|
May-09 |
1.72 |
53.2 |
|
1,790 |
|
29.1 |
|
977 |
|
5,828 |
|
Jun-09 |
1.62 |
15.6 |
|
638 |
|
8.5 |
|
348 |
|
1,765 |
|
(10 days) |
|
|
|
|
|
|
|
|
|
|
|
Michigan
