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Empire Energy Group brings seventh well into production in Kansas

Empire Energy Group (ASX: EEG) now has seven wells on production in Russell County, Kansas, U.S. after the company brought its eighth well, Helmers Unit #3, into production.

Helmers Unit #3 produced an initial four day flow rate of 91 barrels of oil per day.

To date Empire Energy has spud nine wells of a proposed 10 well program. The company previously decided to plug the Driscoll #31-8 well because formations were not encountered.

Empire Energy has also decided not to complete the ninth well, Wokaty #7, and has plugged and abandoned it.

The company announced previously the well, which was spud in late October, had intersected several potentially productive Lansing-Kansas City zones, but the Arbuckle zone targeted had not been intersected.  

Economies of Scale

Last week Empire Energy revealed that the costs of completing and bringing into production the first six wells on the Central Kansas Uplift came in at $202,000 per well, significantly lower than the estimated cost of $326,000 per well.

These costs savings over the six wells have helped the company save close to $750,000 compared to forecasts.

The savings were achieved through economies of implementing a 10 well drilling program, selective purchasing of plant and equipment, sharing of tank batteries and efficient utilisation of drilling and completion resources.