Second Wave Petroleum Inc. (TSE:SCS) (PINK:SCSZF) had the share price gap up after the company announced another positive operational update.
SCS added 5.7% as the share price gapped up on Wednesday carrying a trading volume of 1.4 million, nearly 4 times larger than the 90-day average of 366 thousand. The price also jumped above its 50-day moving average of $2.72 per share, which now serves as support.
The move was initiated by a press release. On September 7, 2011 Second Wave announced an operational update for activities on Beaverhill Lake at Judy Creek. Among the main highlights, Second Wave managed to raise the current production to 2.3 thousand boe/d.
Under the drill program SCS tested two 40% working interest oil wells over a 15-day period at gross rates of 1.2 thousand boe/d and 2 thousand boe/d . To date, five out of six wells tested under Beaverhill Lake drill program have achieved average gross production rates that are on pace to exceed 700 boe/d over a 30-day period.
Production from these wells will be restricted to the maximum rate limitation of 260 boe/d after expiry of their new oil well production period which is 4 months. The limitation will be in place until good production practice is approved by the Energy Resources Conservation Board for the Beaverhill Lake formation. The management currently expects these limitations to be partially lifted in early 2012.
