08.31.2009 2:49 pm
Firm plans to restart Missouri oil wells
St. Louis Post-Dispatch
The markets haven’t been kind to MegaWest Energy, the Canadian company that began producing oil in western Missouri last year. Falling oil prices forced the company to suspend production jst a few months after it started, and the wells have been idle throughout 2009.
Today, however, it looks like Missouri’s oil belt will be back in business. MegaWest got a $2.2 million investment from two institutional investors in exchange for a 10 percent stake in the Missouri wells. It says the money will enable it to restart operations. Higher oil prices help, too — crude has risen to $70 a barrel from about $40 when the wells were shut down.
The wildcatter’s shares are rising on the news, but they’re still down 72 percent from a year ago.
(3 votes, average: 1 out of 5)
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
How many barrels a day do the wells produce? How many wells? New or old ? What is the degree of gravity? Any gas? What depth? On State, Federal or private land? Why is it they could not make money @ $40/barrel? Thanks Jerry
Jerry, MegaWest’s SEC filings will answer some of your questions. As of last October they said they had completed 86 production wells in Missouri. Production started at 50 bpd and the company said its target was 500 bpd. This is heavy oil, contained in sandstone, and requires a steam-extraction process. That makes it relatively costly, and the news releases don’t mention any gas production.
http://www.megawestenergy.com/projects/missouri.html i was at grassy creek last year and was interested in looking up what they were doing