Drilling of Second well in Capitola Oil Project Underway
Brisbane, Oct 21, 2014 AEST (ABN Newswire) - Drilling of the McCain 189-F1 well, the first to be drilled in the Claytonville acreage block within the Capitola Oil Project is underway with a second drill rig. The well will be drilled to a target depth of 7,300 feet (2,225 metres) vertically and will intersect multiple stacked objectives including the productive Canyon Sands and other untested Canyon Sands as well as the Palo Pinto, Cline Shale, Strawn and Ellenburger formations. The McCain 189-F1 is the second of three Capitola Oil Project wells planned for October.
Pryme has a 100% WI (75% NRI) in the McCain 189-F1 well before Payout and is the operator of the well and the Capitola Oil Project. Upon Pryme receiving 100% of its costs from net operating cash flow from all three initial wells (Payout), Pryme's interest in the McCain 189-F1 will reduce by 25% to a 75% WI (56.25% NRI.)
About the Capitola Oil Project
The Capitola Oil Project is located in an active region of the Eastern Shelf of the Permian Basin just north of the town of Sweetwater, Texas. The project contains a number of shallow, "stacked" formations to depths of 6,000 feet, with established production history from vertical wells. These overlie the Cline Shale formation which is the subject of an emerging resource play of national significance. Pryme's value creation strategy is to develop the shallower, well-defined targets using advanced drilling, completion and stimulation technology, and to exploit the emerging Cline Shale resource play as the major US E&P companies which surround Pryme's acreage demonstrate its value.
There are three primary targets in Capitola along with numerous secondary targets. The primary targets, which persist throughout our acreage, are the Breckenridge Lime at 4,500 feet deep, the Canyon Sand series at approximately 5,200 feet in depth and the Cline Shale at 6,000 feet deep. Pryme is earning a 75% working interest in 9,333 acres (7,000 net acres) in all mineral rights from the surface through to the top of the Cline Shale and a 50% working interest (4,666 net acres) in all other rights including the Cline Shale.
The Capitola Oil Project acreage is contained within two lease blocks, each contiguous and referred to as Sweetwater (approx. 7,000 acres) and Claytonville (approx. 2,333 acres) to the north of Sweetwater. Pryme is the operator of the Capitola Oil project.
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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