Irvine field
Over the last years Caspian, through its 50% share of Black Gold Inc, has embarked on a programme of purchasing neglected assets in partially depleted US oil fields. Typically these are fields that have produced large quantities of oil with significant remaining in-situ resources and with existing well infrastructure in place but which yield very low quantities of oil in the region of 1-10 barrels of oil per well per day.
The first such project is leases in the Irvine field in Kentucky.
Black Gold currently has several wells in production on the Barnet lease of the Irvine field producing in the region of 90-100 barrels of oil per month and providing a modest positive contribution to cash flows. The group expects the expansion of operations to provide further more meaningful cash flows.
