Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP) (COPL) said it has received permission to flare gas at its Barron Flats Shannon unit in Wyoming.
The temporary permit will allow COPL’s affiliate SouthWestern Production to increase production and help clear any bottlenecks, the company said in a statement.
Arthur Millholland, COPL's CEO commented: "This is a great result as it will allow the company to manage increased gas production with associated high working pressures as the miscible bank moves in the injection patterns. In addition, our oil production from the Shannon Unit will increase as production rates have been restricted in certain wells due to these issues."
“The gas flaring is temporary, as we plan to debottleneck the gas gathering system in the coming months by first tying in two flowing wells directly to our gas plant followed by staged upgrades to our gas gathering system," he added.
COPL has an 85% working interest in the Barron Flats Shannon unit.