Curzon Energy Plc (LON:CZN) chief executive Stephen Schoepfer highlighted, in the company’s half-yearly results statement, that it is currently evaluating alternative strategies for accelerating development of the Coos Bay coal bed methane (CBM) assets.
These efforts include a possible farm-out deal, and talks with potential partners are underway. Earlier this year, Curzon re-perforated certain wells through a workover programme at Coos Bay.
Five wells have subsequently been on long-term testing but the commercial threshold has so far not been reached.
READ: Curzon Energy to accelerate production with additional fieldwork at Coos Bay
“While certain wells are showing gradual increased gas production rates, the wells have not yet achieved commercial gas production rates that would enable us to connect and sell gas into the nearby regional pipeline,” Schoepfer explained.
“Of the five wells, the 1-21 well has shown the most promise to date and is the well with the most zones perforated, including several targeted deeper zones.
“However, the current location of the pump in this well is deemed to be too shallow and is preventing sufficient removal of the water required to open and exploit all perforated zones.
“We are currently analysing various options that would install additional pumping capacity at the proper depth to allow this well to demonstrate its full potential.”
In terms of financials, the pre-revenue firm reported a $535,706 loss for the first six months of the year, and, it ended the period with $451,188 of cash and equivalent.