"The Company has commenced the process to sell its Kentucky producing wells which currently produce at rates of 15-20 barrels of oil per day. The Company is the operator of this 2,000 acre property in Western Kentucky and owns 50% of this property.
Current production from the Company’s North American assets is at 70 – 80 Bopd
Fremont’s engineers have identified several wells that require work-overs that will lead to a 30 Bopd increase. The total cost of this program is approximately US$30,000, and this work has commenced. The Company is confident it will be producing at a sustainable production level of 100 Bopd by next month. At US$50.00/bbl of oil, this equates to US$105,000 per month of revenue net to FPL.
Negotiations are ongoing and Fremont expects to finalise negotiations and sign binding Gas Purchase Agreements in the next 90 days, with first gas deliveries and sales targeted for June 2018. The Pathfinder project contains massive amounts of gas, with gas being encountered with every well that the Company has drilled in the field. Independent Engineering estimates over Fremont’s 100% owned and operated 16,798-acre Pathfinder project calculate the gas resource at 220 billion cubic feet (P90 – 90% probability).
FPL Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
