Since start-up in the fall of 2009, Faulkner 1 plant output has been increased incrementally from approximately 30 MW (gross) to the current level of approximately 48 MW (gross). The increased production is attributed to further distributing injection fluids into new deep wells 57-15, 58-11 and 91-15 to the north and west of the production area, each having an injection capacity of over 2000 gallons per minute.
In late 2010 and early 2011, NGP completed drilling of three injection test wells to the south of the production field (wells 41-27, 86-22 and 34-23). No additional wells are planned in the immediate future. Long term injection tests are being initiated for new test wells 86-22 and 34-23, as well as earlier completed wells 38-14 and 89-11. Reservoir production projections using data from all wells will be used to set future sustainable production levels at the Faulkner 1 plant. The possibility of converting western injectors to producers to increase production capacity will also be assessed.
At the same time the Company is assessing a tax assisted financing and a cash grant for additional well field work, with which it may repay the TCW loan further.
