Shelf Energy LLC- følgende tiltag er planlagt på disse kilder, for at i møde gå den lavere oliepris p.t.

1. maj 2020: Shelf Energy LLC- følgende tiltag er planlagt på disse kilder, for at i møde gå den lavere oliepris p.t.

Yes. We are making headway on using this time to lower LOE on all our producing wells.
1. Cheramie #2 - We are fairly close in replacing SWD disposal on the Cheramie for considerable monthly savings. We need to fix a hole in the tubing on this well and acidize. Should increase production to 35-40 bod. We may change to a jet pump in early 2021 so we would get rid of the compressor rental. Overall looking to decrease LOE’s 5-8k/mon and double production. Existing factors will make us wait until early 2021. Mainly compressor rental is for one year and ends in April 2021.
2. SMB- looking to put a Jet Pump and increase oil production. Need to lower SWD disposal and will be doing the same as the Cheramie #2 well. Will be negotiating to reduce existing yearly swd fee from $12500 to $7500/year.
3. Moresi #1 – Still need to add perforations. Will AFE +/- $25k. 15-20 bod anticipated.
4. Moresi #4 – Recomplete. Waiting on oil prices. AFE +/- $85k. 15-25 bod anticipated.
5. Hayes #2 – Small acid stimulation to bump up production.
6. Bergeron #1 – Will be negotiating to reduce yearly swd fee from $12500 to $7500/year. May add perforations to increase production.
7. Brown Odom & Pintail Lease – Shut -In wells April 22 due to oil price and trouble with the swd well pressuring up. Looking at ways to remedy swd. Expect to turn well’s on at least every 2 months for +/- 10-15 days to maintain lease. The decision to turn wells back on based on Oil Price and will the marketer actually take our oil.

Shelf has over 3000 bbls of storage capacity between the SMB and the ALB facilities. We will continue producing and fill up storage with oil or if the markets do not take our oil. Then at the right time we can sell all the oil. So we will be negative for maybe a few months then sell at the right time and make our money back.

tom