Fremont Petroleum starts extensive workover program on Trey Exploration leases

Fremont Petroleum Corporation Ltd (ASX:FPL) (OTCMKTS:AUNXF) has started a 21-well workover program on the 100%-owned Trey Exploration leases in the US that were acquired in October 2020. These leases are in the US states of Kentucky, Indiana and Illinois with the company planning to begin its work programs at the Knox County leases in Indiana. Trey Exploration production averages around 71 barrels of oil per day from its leases from around 115 conventional oil wells, many of which are inactive and others that can be worked over to enhance current production. Work plans Fremont plans to undertake chemical treatments, acid jobs, mechanical and electrical works and some low-cost refracturing of well-bores. Work will initially focus on the Knox County leases where Trey owns and operates seven oil-producing leases/units with 24 producing wells, nine injection wells, and 16 inactive wells, most of which have the potential for primary and secondary oil recovery. The Trey leases in Southern Knox County represent one of the largest under-developed tracts of land in a traditional oil ‘fairway’ remaining in the Illinois Basin today and FPL sees considerable production upside here. The company will now focus on delivering early production gains from the initial workover program with first results due by the end of January. Investment to “enhance production” Fremont chief executive officer Tim Hart said: “The Trey leases have tremendous upside and this workover program marks FPL’s first investment in these leases to enhance production. “We were attracted to Trey at much lower oil prices when we acquired the leases and with WTI tracking above US$50.00 a barrel, these leases are now much more valuable. “Today’s update outlines phase 1 of our workover program for Trey and we will provide updates on other leases we have earmarked for production enhancement. “We are also deploying capital on ongoing well-work in Colorado and on our other Kentucky Exploration leases. Well-funded to deliver gains Hart said: “Following our recent capital raise we are very well-funded to deliver material production gains and increased cash flows from these ongoing workover programs across all our leases. “We also continue to assess opportunistic acquisitions where asset prices are mismatched with their underlying value. “Compelling conventional producing natural gas assets are being assessed and any transaction will be non-dilutive.”