Rosewood Plantation 21H No.1 Production Update
Brisbane, Mar 11, 2013 AEST (ABN Newswire) - Pryme Energy Limited (
ASX:PYM) announce that the flow back operation on the Rosewood Plantation 21H No. 1 well has been underway since last Monday night (Brisbane, Australia time). The objective of the operation has been to clean up the well and establish a stable rate of production.
As reported, the initial maximum flow rate, which was observed shortly after oil flow was established, was 1,040 barrels of oil per day (bopd) and 1,850 thousand cubic feet per day (Mcfd) of natural gas and the average flow rate over the subsequent 12 hours was 780 bopd and 1,700 Mcfd of natural gas. To date the well has produced approximately 1,900 barrels of oil with the natural gas being flared.
The well profile consists of a near vertical section to a depth of 15,320 feet (4,670 metres) with a "lateral" section, within the Austin Chalk formation, of 4,480 feet (1,365 metres) in length. A slotted production liner has been installed in the lateral section. In detail, the lateral section has been designed to follow a path which is slightly above horizontal with the result that the "toe" of the well is slightly shallower than the "heel" of the well, at the base of the vertical section, and the lowest point in the well path is near the start of the slotted liner.
Our current interpretation is that, due to gravitational segregation, heavy drilling fluid and cuttings remain in the heel or other segments of the lateral and the well has not yet cleaned up. The heavy drilling fluid appears to be restricting the flow of oil from the oil bearing fracture systems, which were encountered when drilling the lateral leg, and oil is being produced through an open choke in "slugs" rather than continuously. The well is currently flowing approximately 85% oil and 15% water and drilling fluid in slugs with flow rates over the past 24 hours up to 800 barrels of oil and water per day, which, however, are not high enough to lift the solids to surface.
We are planning to shut the well in and monitor the pressure build up towards the original reservoir pressure. We will then use the pressure data as a basis for establishing the next steps towards rectifying the issue and establishing a stable rate of production.
At this stage it is too early to predict the long term flow rate or ultimate recoverable volume from the well.
About Indago Energy Ltd
Indago Energy Ltd (ASX:INK) (OTCMKTS:POGLY) is an Australian listed company engaged in oil and gas exploration, development and production. Indago's project portfolio includes liquid rich producing assets together with substantial oil development and exploration acreage in the United States.
The Company's Exploration and Production focus is on high growth oil and gas projects offering scalability of production, cash flows and reserves. Indago currently has several producing projects together with a significant acreage position. The Company's immediate focus is the development of its Capitola Oil Project located in an active region of the Cline Shale resource play along the Eastern Shelf of the Permian Basin, Texas. The project's core development and exploitation opportunities are shallower multiple "stacked" sandstones and limestones to depths of 7,000 feet which are effectively produced from vertically drilled wells. Indago's value driven model is executed through exploiting shallower, well defined intervals with advanced completion and stimulation technology within known produced oil fields together with exposure to the emerging Cline Shale resource play.
Indago's shares are publicly traded on the Australian Securities Exchange (ASX ticker: INK) and also as American Depositary Receipts on the OTCQX (ADR ticker: POGLY).
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