First oil production in the US for Loyz Energy

UPSTREAM oil and gas firm Loyz Energy has started its very first oil production, marking a new source of revenue stream.

The group said yesterday that a well in North Dakota in the US had reached a stable production of 50-60 barrels of oil a day.

The Schlak #3 well is part of an agreement between Loyz Energy and Fram Exploration, an associate of Catalist-listed Rex International, to drill 80 onshore wells in Colorado and North Dakota. Under an agreement signed last year, Loyz Energy receives 20 per cent of the net revenue interest from every producing well.