Plaquemines Parish, Louisiana
The Lake Hermitage Field is located in Plaquemines Parish, Louisiana, approximately 25 miles south-southeast of New Orleans, Louisiana. The field is a salt dome structure discovered in 1928 and has produced significant quantities of oil and gas from multiple sandstone reservoirs between 3,100’ and 14,200’. It is situated in a shallow, marshy environment on the west side of the Mississippi River.
The Company owns a 100% working interest and 75% net revenue interest in each of the eighteen wells in the Lake Hermitage Field. A total of 3,589 mineral acres is held by production in the field. Ten wells are currently shut-in pending evaluation for workover and/or future recompletion in uphole zones, and an additional well is being evaluated for conversion to a salt water disposal well, which would reduce expenses and allow for increased daily handling of fluid. There are three processing facilities and tank batteries in the field. The high gravity crude oil produced at Lake Hermitage is transported out of the field by barge.
In January 2013, the Company completed a successful workover of the LLDSB #10 well in Lake Hermitage Field and the initial results have been promising, with daily production rates for the well as high as 200 BOPD. Additional strategic workovers have been executed resulting in initial field production rates as high as 400 BOE/D. The Company has planned and commenced an aggressive workover and recompletion program in the field for 2013 and expects additional positive results. An extensive geological and engineering evaluation of the field is ongoing. Thirty-nine potential drilling locations have been evaluated, at least five of which are proved undeveloped (“PUD”) locations with multiple stacked pay zones.