Testing on target following completion of re-entry

PETROLEUM exploration and production company Target Energy has completed re-entry operations in the Shepard’s Channel in Lafourche Parish, Louisiana; a completion rig is scheduled to mobilise to the site to start testing.
The operation involved re-entering an abandoned well where sands had not been tested due to not previously being considered prospective.
Drilling in Shepard’s Channel began in December 2011 and immediately encountered porous and potentially gas-charged sands. Technical issues such as the recovery of a stuck pipe in the 20cm-wide borehole, 4km underground, caused delays during drilling.
In a statement released to shareholders, Target chairman Chris Rowe said that he was pleased to finish the initial phase of the drilling program.
“While as an industry we routinely work at these depth, it requires a great deal of skill and perseverance to overcome problems in such an environment,” he said.
Mr Rowe said he was happy with the initial results of testing. “We were also extremely encouraged throughout this phase by the persistent influx of gas into the borehole, reinforcing our original assessment of the prospectivity at Shepard’s Channel, which we believe may hold up to 200 billion cubic feet of recoverable gas and 12 million barrels of condensate,” he said.
“Furthermore, in addition to testing our primary target – the 28 metre thick channel sand – we also plan to evaluate at least two other deeper, potentially productive sands present in the borehole.”
Target is earning a 15.33 per cent working interest (WI) in the Channel, which covers about 1800 acres. In mid-2011 the company entered an initial agreement to earn a 7 per cent WI in the project from an unnamed party, but in April this year increased
its position to 15.33 per cent. Target purchased the additional interest for a cash payment of $35,000, with a further $90,000 to be paid pro-rata out of future net cash flow from the well.

 

By Josh Del Pino

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