By OGJ editors
HOUSTON, Feb. 9 -- Quantum Resources Management LLC, Denver, informed interest owners that it had suspended production from giant Jay oil and gas field in the Florida Panhandle on Dec. 22, 2008.
The dramatic decline in oil prices and high operating expenses led to the action, Quantum said. Quantum said it maintains the capability to reestablish production and is "analyzing alternative production scenarios that might result in improved economics."
Quantum informed royalty owners, including LL&E Royalty Trust, Austin, that it is analyzing all options to reduce operating costs.
Discovered in 1970, Jay field in Santa Rosa County was estimated to have 763 million bbl of original oil in place, of which 458 million bbl was judged recoverable. Jay had produced 369 million bbl through 1990 and was down to about 4,000 b/d of oil and large volumes of water in recent years.