NWTR: Zacks Initiates coverage with an outperform rating.
By Ian Gilson, CFA
New Western Energy (NWTR) is involved in the acquisition, exploration development and production of oil and gas from properties in the United States. The company owns the rights to drill on a significant number of properties in Texas, Oklahoma and Kansas. Estimated reserves are about 13.3 million bbl of oil, acreage under lease is 4264 acres and there are 89 oil wells on the properties, most of which can be reworked to produce oil.
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On Oct. 16, 2012 New Western Energy announced that its subsidiary, Royal Texan Energy, started a major work-over program on Well #1 on its Sam Cannon unit in the 680 acre Moran Lease in Shackelford County, Texas. The work-over is initially focused on the Mississippian production zone at a depth of 3,902 ft. However, a broken tube at 2,500 ft. will have to be removed before the well bore is open and production started. Well #1 and well #4 on the same property, have together produced over 190 BOPD (Barrels of Oil per Day) in the past, or close to $1.5 million per quarter at current oil prices.
The company completed its drilling program on Swenson #1 oil well on the 160 acre Swenson Lease in Jones County Texas in mid-Sept. 2012. Surrounding leases have been very productive in the past. This well has been a producing well for the company over the past year.
New Western Energy announced on Sept. 17, 2012 that its operating partner on the Glass Lease in Rogers County Oklahoma has completed phase one of a new work-over program. Out of the 14 wells on the property 8 have been plugged to increase oil pressure in the Bartlesville Formation. These 8 wells had not been in use for several years. This work-over will increase oil production from the other 6 wells.
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