Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP) (COPL) has updated on the progress of its gas gathering system at the Barron Flats Shannon Unit (BFSU) project in Wyoming, where construction work is now advancing after pipe welding began earlier this month.
The company, in a statement, said that welding started on 10 May and construction is expected to take two to three months to complete. It will span some five miles of high-pressure steel pipe routed through the core area of the field.
Phase 1 of the project is budgeted at US$4.5mln, funded from proceeds of a recent bond financing.
“The GGS Phase 1a project is designed to connect our top producing wells in the Shannon (Miscible) flood and other wells proximate to the main GGS trunkline, alleviating pressure related issues, reducing flaring requirements and allowing our facilities to return produced gas back to the BFSU gas plant,” said COPL chief executive Arthur Millholland.
“We are pleased with the progress to date which is on time and on budget.”
The pipeline and gas gathering system is part of a programme of projects that aim to maximise production from the BFSU asset which has performed strongly for COPL since it was acquired in 2022 and subsequently added a number of well completions.
In April, the company reported that COPL production averaged 1,200 barrels per day in the first quarter of 2023.