GIVEN ACTIVITY DRIVES RETURNS THIS BUSY DRILLER IS WORTH A LOOK
One of the most active oilers on the ASX, Fremont Petroleum Corporation (ASX: FPL) is arguably the most active micro-cap currently drilling on the ASX today.
FPL controls and operates 100% of its 16,798 acre Florence oil field located in Colorado which is currently producing at circa 110 barrels of oil per day. Not only has FPL commenced spud activities this past week in an initial 2-3 well drilling program on the shallow Pierre oil development but it has also announced a farm-out of its deeper Greenhorn formation targeting an oil-rich shale with the cost being covered 100% by its new JV partner.
The Florence field located in Colorado is a conventional development asset held 100% by Fremont.
The development play is a gravity drainage field with the Florence field displaying relatively predictable flows rates, decline rates and financial outcomes by applying low cost conventional and proven drilling techniques. Based on success in the adjacent field, the development of the play has been considerably de-risked when 3D seismic and soil geo-chemistry testing is used to pin-point seeps in the field and subsequent drilling locations.
