by Greg Klein | February 5, 2016
A $250,000 line of credit will allow Cardiff Energy TSXV:CRS to proceed with acid treatment on the Clayton #1H in west-central Texas and put the well into production. “The acid treatment will use in excess of 20,000 gallons of 15% HCl acid and will selectively stimulate the areas of the well bore that had the most significant hydrocarbon shows during drilling,” the company stated on February 5. Work is scheduled to start the week of February 15.
“Our geologist and team have reviewed the proposal and are confident that the plan will be a great success,” stated president/CEO Jack Bal. “Cardiff is now selecting the location of the next two wells and believes, with the knowledge gained by drilling the Clayton #1H, the next wells will be drilled much cheaper and move faster to the production stage.”
In December the company reported initial Clayton #1H flow rate results of 275 barrels of oil per day without any stimulation to the formation.
Cardiff also announced on February 5 a private placement of up to six million units at $0.05, with each unit consisting of one share and one warrant exercisable at $0.075 for two years. Subject to approvals, insiders will take at least two million units. Proceeds will go to Clayton #1H and general working capital.
Located in Runnels county, Clayton #1H is a joint venture in which Cardiff holds a 70% working interest and Equitorial Exploration TSXV:EXX the remainder. Cardiff has a 100% working interest in the adjacent Bearcat #4.