Missouri

By OGJ editors
HOUSTON, Sept. 30
– MegaWest Energy Corp., Calgary, suspended heavy oil production and steam injection at its Marmaton River and Grassy Creek projects in western Missouri to add equipment and assess the reservoirs.

The company is installing thermal and pressure data acquisition equipment and running well logs to identify swept vs. unswept areas of the reservoir.

Steam injection resumed Sept. 29, 2010, at Grassy Creek. After production resumes, chemical surfactant and seismic stimulation technologies will be tested.

Marmaton River steam drive Phases I and II occupy 20 acres from which cumulative production exceeds 41,000 bbl of oil from 64 producing wells and 23 injection wells. Grassy Creek steam drive Phase I has yielded more than 17,000 bbl of oil from 46 production wells and 15 injection wells.

The company sells the oil for 80% of the NYMEX posted price for West Texas Intermediate crude and purchases natural gas to fuel its steam generators.

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