On Friday, Lexaria Corp. provided an update relating to operations and oil production at Belmont Lake. The Company reported that after a temporary interruption of only 17 days (due to unprecedented flooding of the Mississippi River) oil production from the Belmont Lake oil field resumed on June 3, 2011 and is continuing normally at this time.
The highest ever-recorded water level at the Natchez monitoring station, prior to 2011, was 58.04 feet. Lexaria Corp. and their operating partners designed the Belmont Lake oil field production and gathering system with the capability to operate up to this highest-ever water level. The Company reported that their production system operated at even more extreme flood conditions than this. Production was only interrupted when the local paved road was temporarily under water. This prevented tanker trucks from removing oil from the tanks of Lexaria’s production facility, which were filled with oil.
Eventually, the river crested close to the 62-foot level; it has now receded to under 55 feet and is currently dropping at the rate of more than two feet per week. Lexaria Corp. expects the oil production to continue, unless the river rises unexpectedly in the coming days.
The Company is very pleased to have weathered this record-setting flooding with only a modest interruption in production. They note that their production system has now passed some of the harshest natural conditions that are likely to be encountered ever in the area.
In addition, Lexaria Corp. reports that the previously announced Tuscaloosa exploration well USA 1-27 did not encounter the expected primary Tuscaloosa sands that were targeted. The Company had acquired a 5 percent interest in the Tuscaloosa exploration well USA 1-27.
Secondary Tuscaloosa sands were encountered; however, they were inconclusive and consequently, a decision was reached to plug and abandon that well. The Company had pre-funded the costs of drilling this exploration well. Therefore, they do not anticipate any additional significant monetary burden.
With corporate offices in Vancouver, British Columbia, Lexaria Corp. is exploring for and developing oil and natural gas assets in low-risk areas of the United States and Canada. The Company is currently focusing on oil production and development in Mississippi and is producing oil from various wells at the Belmont Lake oil field. During any given month, Lexaria Corp.’s production is between 90 percent to 100 percent oil, and between 0 percent to 10 percent gas.
For more information visit: www.lexariaenergy.com
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