Lower river allows Lexaria to begin early work on oil wells

MISSISSIPPI DELTA — Lexaria Corp reports it has a rig is on-site at the Belmont Lake Oilfield near Clarksdale to perform workovers on the 12-1 and 12-3 wells.

The Mississippi River has fallen below flood-stage earlier this spring than it has during the last several years, and as a result field access has already been achieved — nearly three months earlier than last year, according to the company.

These were the first two wells put into production at Belmont Lake in 2007 and 2008 and had been scheduled for workovers in the fall of 2011, but access was not possible then due to wet conditions from the early seasonal flooding.

The operator moved a workover rig onto the site May 1, and work on both wells is presently underway. Scheduled work includes additional perforations higher in the formation; re-positioning of the gas-lift system for more optimal flow; and, the installation of higher-capacity flow lines designed to accommodate higher flow rates.

Additional field infrastructure work is also underway, consisting of the installation of a permanent metering and control assembly that allows for the supply of piped natural gas purchased from a permanent supply source. This will give the Belmont Lake field owners the ability to purchase gas from outside suppliers, or continuing to provide gas from our own gas supply-well.

All the work noted herein is expected to be completed during the month of May. Lexaria, which is headquartered in Vancouver, British Columbia, Canada, said it would report on the new oil production rates once the work is complete and production conditions show signs of stabilization.