"We drilled at a deeper depth and achieved almost double the lateral length in multiple zones compared to the wells tested outside of
The laterals were cut at a rate of approximately 1.5 feet per minute using water, acid and certain other fluids under a pressure of approximately 3,000 psi. Additionally, the laterals were jetted at three separate depths within two targeted producing sand sections. Oil was visible in the retention pits containing the circulated fluids and the well experienced a few kicks from gas pressure after the laterals were drilled. Lateral jetting on a second Austin Chalk well for Reliance is expected to commence later this week.
This first well in the Austin Chalk achieved a total of eleven laterals in the upper, middle and lower zones. The lateral extent was deliberately constrained by a 90 foot flexible hose, which was employed to avoid certain additional
If the results of the two test wells in the Austin Chalk achieve expected flow rates, Reliance has already received funding for a new seven-well project and will receive funding for the drilling of an additional 18 wells in the area under the planned Austin Chalk drilling program.
Under the terms of the Blast revenue sharing agreement, Reliance will operate the lateral jetting rig at no cost to Blast and will share 50% of the revenues generated from such rig. The rig has been contracted at a gross rate of
During
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SOURCE Blast Energy Services, Inc.