Furthermore, the Company will release significant progress and
information related to its Chewelah, Washington facility following
site inspections this week. The Company is also pleased to
remind investors of our stance against dilution (with no new shares
issued in 2016) which has been made possible through our
£30,000,000 GPB bond offering in the UK.
Infrastructure Improvements
Substantial infrastructure, road and well pad improvements were
planned and carried out over the summer. A Road Grader, Backhoe and
service truck were acquired and utilized to grade and rock roads
into the centralized production facility for a number of the
wells. Lease roads to the producing wells, and wells slated
for workover and resumption of production, were bladed, rocked in
places, culverts and erosion control installed, and otherwise
brought up to standard. We believe these improvements will
help us to avoid shut-in events; maintain access for continuous and
consistent production; as well as allow production through most, if
not all, of the winter months.
Well Workover Program
Early in the summer a regimen of field testing and well
assessment was developed to identify the wells that would most
benefit from workover and increase production. Study of the
specific well histories and physical inspection we high graded 16
wells that would be the most likely to enhance production after
workover. A number of the wells were identified as P&A
candidates to be scheduled out over the next few years, and as well
we have identified several existing wells that are candidates for
re-completion in shallower formations.
During August and September, 12 of those 16 wells have been
worked over with cleanouts, replacement of the pumps, and repair or
replacement of rods and tubing as necessary, and swabbing to assess
and enhance production potential. We hope to complete workover of
the remaining four wells before winter sets in. The wells are now
in various stages of being placed back into production. Many of
these wells had been shut in for months and even years and we
should be seeing incrementally increasing production in the coming
months as we complete the surface facility repairs in the coming
weeks.
Production and Wellsite Facilities and
Infrastructure
As the workover program progressed, the production and wellsite
facilities were inspected and reviewed for safety, need of repair,
and opportunities for savings in operating costs. The Bison
Production Battery was repaired and brought back to safe and
efficient production. The treater building is being repaired and
prepared for operation in the winter months. Electrical service has
been or is in process of repair or installation at several of the
wells worked over. Flow lines at two of the wells are being
replaced so the wells can be brought online. Tanks at many of the
production facilities and wells have been cleaned and inspected,
water and contaminants cleaned out. Little Joe regulators have been
installed on certain of the wells to maximize use of free gas from
the wells and minimize use of costly propane for operations. We
expect that the remaining repairs will be complete by the end of
this month, or early the next.
Chemical Treatment Program Under
Development
As the wells were worked over it became clear that many of them
would benefit from chemical enhancement to mitigate conditions
inhibiting production. Paraffin and scale have been identified
in many of the wells. The company's pumpers and consultants are in
process of developing a cost effective and simple chemical
treatment regimen for the appropriate wells that will enable
consistent and trouble free production. In some cases we
believe these treatments can even increase the daily production
over an extended period. As a new and consistent baseline of
production is established for the wells with the workover and
infrastructure improvements completed we will begin to apply the
treatments and determine what provides the best ROI for the
wells.
Geologic Data Collection and New Drilling
Locations
A testing regimen incorporating a digital magneto-telluric
technology developed by DMT Technologies of Broken Arrow Oklahoma,
http://www.dmttechnologies.com/, was deployed to
obtain new and detailed subsurface data concerning the leaseholds,
and adjacent areas with potential for new production and
acquisition. While full analysis and integration of the data is not
yet complete, from the data so far our contractors have identified
many specific, new drilling opportunities with high probability of
success for shallow, inexpensive conventional vertical wells within
and adjacent to the leaseholds. Upon completion of the analysis we
will high grade the locations with the most potential for new
production and reserves, and begin applying for drilling permits
and planning the drilling of new wells in the summer months.
About CGrowth Capital, Inc.:
CGrowth Capital, Inc. The Company continues to serve as an
alternative asset management company for businesses and assets
focused on all aspects of mining, minerals, exploration, and
commercial real estate. The processing of metal ore mining, mineral
and specialty rock extraction, as well as oil and gas production,
are multi-billion dollar market opportunities which is capitalized
on through processing, sales, contracting and licensing of assets.
CGrowth Capital's services and solutions are designed to assist
land owners with monetizing undervalued assets by bringing
commodities such as gold, silver, oil and gas, and dolomite to
market. CGrowth Capital will focus on acquiring land assets, while
also providing partners and affiliates with management services,
capital, contract management and logistical services necessary for
the successful execution of operations. Through wholly owned
subsidiaries, the Company has begun to strategically leverage real
estate assets for maximum value within newly developing industries
currently underway in Washington State.
For more information and updates about CGrowth Capital and its
subsidiaries, visit their websites or Facebook pages:
http://www.CGrowthCapital.com
http://CGrowthCapitalBond.com
https://www.facebook.com/CGrowthCapital
Safe Harbor
Statements about the Company's future expectations and all other
statements in this press release other than historical facts, are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934, and as that term is defined in the Private Securities
Litigation Reform Act of 1995. The Company intends that such
forward-looking statements be subject to the safe harbors created
thereby. The above information contains information relating to the
Company that is based on the beliefs of the Company and/or its
management as well as assumptions made by and information currently
available to the Company or its management. When used in this
document, the words "anticipate," "estimate," "expect," "intend,"
"plans," "projects," and similar expressions, as they relate to the
Company or its management, are intended to identify forward-looking
statements. Such statements reflect the current view of the Company
regarding future events and are subject to certain risks,
uncertainties and assumptions, including the risks and
uncertainties noted. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
to be incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated, expected,
intended or projected. In each instance, forward-looking
information should be considered in light of the accompanying
meaningful cautionary statements herein. Factors that could cause
results to differ include, but are not limited to, successful
performance of internal plans, the impact of competitive services
and pricing and general economic risks and uncertainties. The
Company disclaims any obligation to update or revise any
forward-looking statements.
