A B N 42 112 256 649
w w w . s o l i m a r e n e r g y . c o m . a u
11 January, 2012 RELEASE TO ASX AND CANADA
Hydrocarbon flows from first zones tested at PalomaHighlights
Two Production tests have been conducted so far on two of the eight potential hydrocarbon pay zones identified, the Fruitvale Shale and Lower Stevens Sandstone formations. Hydrocarbons have flowed to surface, unassisted at a maximum rate of 1.9 MMCFD of gas and 226 BOPD of light oil/condensate. The tests have been limited by downhole mechanical difficulties due to debris obstructing perforations and hindering the flow of hydrocarbons. A coiled tubing workover unit has been mobilised with the aim to clean up the wellbore before resuming testing of the Lower Stevens Sandstone formation.
Commenting on the testing of the Paloma Deep ST/2 well,
Solimar CEO John Begg said:
"The results at this stage, although preliminary, are very
promising and we are hopeful of achieving stabilised flows at
commercial rates once the mechanical issues can be overcome.
It is particularly pleasing that hydrocarbons have flowed to
surface without stimulation of the test zones. Given also the
number of additional zones yet to be tested in the well and
the Company's expanded land position in the play (details of
which will be published in due course) the Paloma project
could rapidly evolve as a significant field development and
production and cash generating asset for the Company."
Solimar Energy Limited (ASX: SGY, TSXV: SXS) is pleased to
provide the following update regarding the ongoing production
testing operations at its Paloma Deep discovery, located in
the San Joaquin Basin, onshore California.
Two production tests have been conducted to date, initially
targeting two of the eight zones previously identified (refer
to diagram below), being the Fruitvale Shale and Lower
Stevens Sandstone formations. Hydrocarbons have flowed to
surface, unassisted at maximum rates of 1.9 MMCFD (million
cubic feet per day) of gas, and 226 BOPD (barrels of oil per
day) of light oil/condensate. The tests have been limited by
downhole mechanical difficulties, due to debris obstructing
and hindering the flow of hydrocarbons and preventing
stabilised rates of production being achieved. At this stage
these operational issues have also prevented the joint
venture from determining which interval delivered the
produced hydrocarbons.
The results so far are very encouraging and a coiled-tubing
workover unit has been mobilised to the well site with the
aim of cleaning up the wellbore before resuming testing of
the Lower Stevens Sandstone Formation.
The well is operated by Neon Energy Limited (ASX: NEN) with a
75% working interest in the project. Solimar is participating
with a 25% working interest. Pursuant to the terms of a
Farmout Agreement, Solimar is paying a promoted share of the
dry hole and completion/testing costs, up to an agreed cost
cap.
Further updates will be provided as the testing program
progresses.
Sincerely,
John Begg
Solimar Energy Limited
For further information please contact: Solimar Energy +61 3
9347-2409
1
Schematic cross section across the Paloma Deep location and Paloma Oil and Gas Field
2
distribué par | Ce noodl a été diffusé par Solimar Energy Limited et initialement mise en ligne sur le site http://www.solimarenergy.com.au. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-11 00:20:21 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
Documents associés | |
Hydrocarbon flows from first zones tested at Paloma |