Titan Energy recently announced that a discovery well it drilled in the Allen Dome oilfield in Texas is now producing liquids at rate of more than 400 barrels per day.
At present, the composition of the flow from JT Reese #S2 is approximately 25 percent oil and 75 percent water, with a limited amount of natural gas in the mix. However, the oil-to-water ratio is expected to improve in the coming days as the load water used in the well's completion is pumped out of the site.
In a press release highlighting the well's success, John McKnight, managing partner of Titan's U.S. operations, called this turn of events "an excellent result for Titan and Energy and its shareholders."
"High value, light oil from JT Reese #S2 is already being loaded into tankers for trucking to local refineries, and will bring very strong cash flow into the company," McKnight said.
In the release, Titan indicated that it is considering the possibility of upgrading its oil production equipment and storage systems to accommodate additional output, although the company will limit production from its established well until it determines whether additional infrastructure will be necessary.
The firm also announced that it has already started making plans for an aggressive follow up drilling program. Further discoveries would likely force the company's hand, in terms of acquiring solutions to increase the field's capacity.
Production delayed by well completion issues
According to a report from Energy Business Review, the start of production from JT Reese #S2 was delayed as a result of issues encountered by workers attempting to complete the gravel pack. drill stem testing then had to be completed before production could begin.