McKinley Project - New 12-33 Vertical Well
- New 12-33 vertical well successfully drilled in March 2010 in the most structurally high position in the prolific light oil Cadotte D Pool and is well positioned to capture what is believed to be significant amount of up dip oil remaining in the pool;
- After completing at 24 ton frac completion of the well in Sept 2010, a 700 meter tie-in was completed in February 2011 and the well was brought on production in late March 2011 having established good contact with the Cadotte D Pool;
- Since being brought on production the well has slowly been improving its oil cut over time moving from less 1% oil initially to a level of 12% to 15% currently;
- Continued improvement in the oil cut as more of the dump flood water is removed should allow the Company to realize the full potential of the well;
- Current production from the well is approximately 10 bopd;
- Recent NI 51 -101 report by Chapman Petroleum Engineering Ltd. effective July 31, 2011, provides support for Morumbi's .expectation for a continued improvement in oil cuts and production rates from our McKinley Property;
Despite some initial operation problems and the fact that the dump flood was larger than originally anticipated Morumbi anticipates that the McKinley Property will continue to improve and make an increasing cash flow contribution to our other operations and activities.