Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXD) shares surged on Monday as it confirmed increased oil production volumes from the Barron Flats project in Converse County, Wyoming, USA.
Production averaged 700 barrels of oil per day, marking a 35% improvement from volumes reported earlier this month.
The company, in a statement, highlighted that the hike in volumes resulted from the commissioning of facilities to reduce the surface working pressures on the most capable producing well in the field. It added that the well – a horizontal well that has produced at a restricted rate of 150 bopd since August – has exhibited an exceptional response to its miscible flood scheme.
“We continue to move forward with our program. As I indicated a week ago, the Shannon field is performing beyond our expectations. This well surprised us in August with its response to gas injection,” said chief executive Arthur Millholland.
“The return to stable gas injection volumes in the field caused flowing pressures of the well to increase to 1150 psi this past week, much higher than those observed in August.
“The upgraded surface facility has permitted reduced wellhead flowing pressures allowing for separated produced gas to enter our gas gathering system for compression and reinjection.
“With this strong response, upgraded facilities and continuing stable injection volumes we expect increased oil production, from this well and additional wells in the field, in accordance with increases predicted in our recent reservoir simulation.”
In London, COPL shares were up 2.88p or 13.71% changing hands at 23.88p each.
–UPDATED to include share price details–