Nextraction Energy Corp. (TSX: NE) has reported its initial well on the Pinedale Anticline produced at an average rate of 104 barrels of oil equivalent (BOE) while continuing to flow back frac fluids at year-end 2010.

After an initial 24 hour flow rate of 3 million cubic feet of gas per day (MMcf/d) from the upper 400 feet of net sand in the Lance and Tertiary formations from the company's 100% owned Noble 6-24 well, the well produced and flared 8,074 Mcf, 28 barrels of condensate and 166 barrels of water/frac fluids from 11 days of production in December, 2010.

The company became the operator of the project on February 1, 2011.

In assuming operations, the company will have the ability to develop the properties in a more efficient and cost effective manner and assist in lifting fluids from the well. Nextraction placed an electric compressor on location in mid-March to assist in lifting fluids that are known to produce with the natural gas and condensate on the Anticline. Nextraction predicts that with this compressor, daily production should average in the range of 800-1,000 Mcf/d and 20 barrels of condensate from the unconventional tight sands. Without compressor assistance, the well averages 400 Mcf/d and 8 barrels of condensate. The producing intervals in the well remain over-pressured, which indicates that the well should perform at the anticipated rates once completion fluids are drawn from the well.

To further enhance future drilling locations, the company has also acquired 3-D seismic and plans to obtain 2-D seismic on the property in this year.

"By completing the first well in Pinedale, we have taken great steps toward development of this project," said Mark S. Dolar, president. "As our knowledge of Pinedale increased, we realized that the use of artificial lift is essential for removing associated water production that flows with the gas and condensate. The decision to place an electric compressor on site to assist in drawing down the water levels and increase gas production from the well also lessens our carbon footprint and assists in our compliance with clean air requirements. As seismic is completed on Pinedale, we will determine the next strategy for development to enhance value to the company."