Tethys Posts Initial Logging Results from Kalypso Well

- Tethys Posts Initial Logging Results from Kalypso Well

Wednesday, September 07, 2011
Tethys Petroleum Ltd.

Tethys announced the initial logging results of its KBD01 (Kalypso) exploration well drilled in the Kul-Bas block some 50 km north west of the Doris oil discovery.

The well has now reached total depth in what is initially interpreted to be rocks of Carboniferous age. Electric logs just run over the deeper section indicate more than 100 meters of gross potential hydrocarbon bearing zones in what is interpreted to be shelf limestones of Carboniferous age. Hydrocarbon shows were also noted whilst drilling. This is in addition to the hydrocarbon indications noted on logs and drill data in the overlying Jurassic section (logged prior to drilling this deeper hole section).

7-inch liner is now about to be run after which a comprehensive testing program on both the Carboniferous and Jurassic intervals is planned following agreement and approvals from the appropriate Kazakh authorities. Obtaining these approvals could take some 2 months (with mobilization of testing equipment to follow thereafter), as this is an exploration well and, unlike appraisal wells, no estimated testing program could be submitted prior to finishing the well.

The nearest field which produces from similar Carboniferous shelf limestones is the Alibekmola field, some 250km to the north in the pre-Caspian Basin Subsalt. It is likely that the limestone interval will require acidisation and possible fracture stimulation to achieve optimal production performance (as do other similar fields). This will be evaluated as part of the test program planning.

Meanwhile, elsewhere in Kazakhstan the AKD06 Doris oil appraisal well is drilling ahead at a depth of 1,755 meters towards the Aptian sandstone target.

Oil & Gas Post

Promote Your Page Too
LINK

Reliable Posts Initial Production Results for Manitoba Well

- Reliable Posts Initial Production Results for Manitoba Well

Tuesday, August 23, 2011
Reliable Energy Ltd.

Reliable provide the following operations update.

Manitoba - Following an extended spring break up, the result of higher than normal rainfall and flooding in southeast Saskatchewan and southwest Manitoba, Reliable commenced drilling operations in early July, 2011 with a rig it has contracted through to March 31, 2012. To date, the Company has successfully drilled three horizontal wells with the fourth currently drilling ahead.

The first well, 04-16-13-28W1 at East Manson, was drilled into the Bakken formation with a horizontal section of 823 meters and included 29 frac intervals. The well has now been on production for 20 days with increasing oil cuts and has averaged 177 bopd gross (133 net) over the last five days, as the well continues to clean up.

The second well, 01-34-12-28W1 at North Elkhorn, was drilled with a horizontal section of 1,280 meters and is currently being completed with 27 frac intervals. The well is expected to be placed on production within seven days.

The third well, 07-09-13-28W1 at East Manson has been drilled with a 580 meter horizontal section and a 19 stage frac program is planned for this well. Completion operations will begin once the 1-34 completion has finished operations.

The fourth well, 15-23-11-29W1 at South Kirkella, is currently drilling and is planned to have a 1,400 meter horizontal section and 44 frac intervals.

The remaining six horizontal wells of our 2011 program in Kirkella include two more horizontals at South Kirkella and four horizontal wells at East Manson. With the success the Company is enjoying at East Manson, the Company's focus will be on developing this field with the aim of increasing production and cashflow.

Montana - In June 2011, Reliable, along with its partners, completed the second vertical well of its Montana program. The White Bear 15-23 well was drilled during the first quarter of 2011 to a total depth of 5,600 feet (1,700 meters) in order to evaluate additional zones below the Bakken. While the original target of reservoir in the Bakken zone was not encountered, this exploration well provided significant data on the Bakken to further the evolution of the geological model of the Bakken in this area of Montana.

Two other potential hydrocarbon-bearing zones were encountered in the wellbore: the Duperow formation and the Bowdoin zone, which produces gas from the Bowdoin Dome field approximately 60 miles to the east. The well was completed and tested in the Duperow formation. High fluid rates were established, but no economic hydrocarbon volumes were produced.

Completion efforts were then directed toward the Bowdoin zone in the original 12B-26 well drilled in 2010. The well was perforated, shut-in for pressure build-up, and once positive pressure information was obtained, the well was placed on flow test. The gas rates for the zone were in line with rates of other unstimulated wells in the Bowdoin Dome field and the well was shut-in and its status with the Montana Board was subsequently changed to "Shut-In Gas Well". Reliable and its partners are currently evaluating the results from the completion and are developing a completion program in the Bowdoin zone of the 15-23 well. The Bowdoin zone appears to be a regional gas resource prospect and we are currently identifying future locations that will evaluate both the Bowdoin and Eagle gas zones.

Oil & Gas Post

Promote Your Page Too
LINK

Initial 2 Tcf Resource Booking at Beach's PEL 218

- Initial 2 Tcf Resource Booking at Beach's PEL 218

Wednesday, August 10, 2011
Beach Energy Ltd.

Beach Energy has completed its internal assessment of the resource potential of the Holdfast-1 and Encounter-1 vertical shale gas wells with the booking of an initial gross contingent resource of 2 trillion cubic feet (Tcf) of sales gas. While PEL 218 (Beach 90%) is approximately 1,600km2 in size, this resource booking has been constrained to areas of 100km2 around each of the two purpose drilled shale gas evaluation wells. Data collected to date indicate the shales are continuous across the PEL 218 acreage.

This resource booking equates to in excess of 330 million barrels of oil equivalent, or approximately 5 times Beach's June 30, 2010 reserves figure. The calculation of the shale resource is based on observed flows, following successful fracture stimulation and continued flow testing at Holdfast-1, and takes into account the main shale and mixed lithology formation target zones (the Roseneath Shale, Epsilon Formation, Murteree Shale and the top section of the Patchawarra Formation).

The resource calculation does not include significant upside potential expected in the, as yet, untested deeper sections of the Patchawarra Formation and the shallower Toolachee and Daralingie Formations. Prior to drilling Holdfast-1 and Encounter-1, the Patchawarra, Toolachee and Daralingie Formations were identified as potential resource targets for gas outside of structural closure. Both Holdfast-1 and Encounter-1 were specifically drilled off-structure to test this play, which confirmed gas saturation in these formations and the probability of a large basin centred gas accumulation in the permit.

While gas flow from the upper Patchawarra interval has confirmed that this formation is productive outside of closure, the remaining shallower intervals (Toolachee and Daralingie) and the deeper Patchawarra Formation sediments, are yet to be tested, and will be targeted for flow testing during follow up exploration and appraisal activity. This is scheduled to commence in the next six to twelve months to investigate the potential to more than double the identified resource in the permit.

This internal resource estimate of 2 Tcf will contribute to a material increase in Beach's total contingent resource, the details of which will be released later this month. As is the normal course of events, an independent review of this resource estimate will take place in due course.

Beach Managing Director, Reg Nelson said, "The booking of a contingent resource of this size is a clear indication of the potential within our shale gas acreage in the Cooper Basin. We are confident, as a result of drilling both Holdfast-1 and Encounter-1 off-structure, that we have a contiguous, thick and gas saturated shale, as well as a basin centred gas play, within PEL 218. The resource booking announced today is likely to be just the beginning of more to come as we continue to de-risk the area through further testing of our two existing wells and our pilot program set down for 2012."

Participants in PEL 218 (Permian JV) are:

• Beach (Operator) 90%
• Adelaide Energy Ltd 10%

Oil & Gas Post

Promote Your Page Too
LINK

LNG Energy Spotlights Initial Results of Core Analysis, Spudding in Poland

- LNG Energy Spotlights Initial Results of Core Analysis, Spudding in Poland

Friday, July 29, 2011
LNG Energy Ltd.

LNG Energy announced that its third vertical well, the Starogard S-1 well on the Starogard concession in Poland, was spudded on July 16, 2011. LNG has an indirect 20% interest in the well which is currently drilling at a depth of about 1,700 meters and has installed 690 meters of steel casing and cementing it from the bottom to the surface. This depth is below the potential fresh water intervals and was installed to isolate and protect the aquifers. A second string of steel casing will be installed and cemented at an approximate depth of 2,050 meters, prior to drilling ahead to the estimated core point. At the core point, the plan is to core the balance of the well for further analysis of the formations.

LNG has also received an initial portion of the core analysis back from the 3rd party contractors for both the Wytowno S-1 and Lebork S-1 wells, on the adjacent Slawno and Slupsk concessions. The data for the Lebork S-1 well is only from the sidewalls taken in the lower portion of the Ordovician and the Alum shale, as the whole core analysis from above these intervals is not yet completed. The additional core analysis data for the target intervals in the Lebork S-1 well, and the final core analysis reports for both wells are expected to be in by the end of August at which time the log analyses for both wells will be reprocessed with the core data.

• Porosities:
  • Lebork S-1 well: 47 meter thick Ordovician/Cambrian interval has an average porosity of 4.0% and
  • Wytowno S-1 well: 91 meter thick Lower Silurian target interval has porosity ranges of 1.1% to 4%, averaging 3.0% and the 40 meter thick shallower Lower Silurian interval has a porosity of 5.6%.
• Gas filled porosity:
  • Lebork S-1 well: gas filled porosity ranges from 0.8% to 3.9%, averaging 1.8% of bulk volume in the Ordovician/Cambrian and
  • Wytowno S-1 well: the Silurian targets range from 0.3% to 1.6%, averaging 1.1% of bulk volume, with one shallower Silurian interval that has a value of 4.3% of bulk volume.
• Desorption:
  • Lebork S-1 well: average desorption values of 40 Standard Cubic feet of gas per ton of rock, ("SCF/ton") over the Lower Silurian and 268 SCF/ton over the 47 meter Ordovician/Cambrian interval. The Lower Ordovician/Cambrian shale had intervals as high as 451 SCF/ton.
  • Wytowno S-1 well: average desorption values of 124 SCF/ton in the Lower Silurian target interval and 77 SCF/ton in the shallower Lower Silurian interval. For comparative purposes BNK Petroleum Inc.'s Oklahoma Woodford Shale Tishomingo field has average values of 104 SCF/ton.
• Thermal maturity:
  • Wytowno S-1 well: thermal maturity values were estimated from the reflectance of pyrobitumen and the Thermal Alteration Index (TAI) obtained from Palynological (micro-paleo) analysis of the drill cuttings, which both equate to a Ro of 1.8 in the Lower Silurian.
  • Lebork S-1 well: TAI for the cuttings from the Lower Silurian to Ordovician/Cambrian are also equivalent to a Ro of 1.8, which places the thermal maturity for both wells in the dry gas window.
• TOC:
  • Wytowno S-1 well: the total organic carbons ("TOCs") are variable across the Lower Silurian target interval, ranging from 0.1 to 1.3 TOC by percent weight. The TOC data from the Lebork S-1 well is not yet available, however both the log calculated values and SEM image analysis values indicate multiple times higher TOCs across the Ordovician/Cambrian shales.

Incorporating the micro-paleo and high-resolution stratigraphic analysis into the geological model indicates that the Wytowno S-1 well was drilled on a localized paleo-topographic high. What was originally interpreted as Ordovician/Cambrian shales are actually Lower Silurian hot shale intervals. The intervals in the Lebork S-1 well have also been revised on the basis of the micro-paleo and high-resolution stratigraphic analysis, resulting in slightly different thicknesses of the various intervals. In addition to the seismic program, a depth to crystalline basement study will be conducted. The study will cover a large portion of northeast Poland, fully encompassing all three concessions. The interpretation of this study will provide better understanding of general basin geometry, identify sub basins and locate significant basement related faulting. The study is slated for completion in September 2011.

Completion activity for the Lebork S-1 and Wytowno S-1 wells are scheduled to begin in the fourth quarter. The possibility of undertaking the completion of the Starogard S-1 well in conjunction with our two other wells is also under review, with well results and equipment availability to determine the timing. Best North American industry practices are being utilized for drilling and testing the wells, including utilizing bladders to hold the fresh water for fracture stimulating the well, the arrival of these are determining the start of the completion activity. The bladders ensure complete isolation from surface soil and water, reduce truck traffic to and from the site and increase safety. The flowback fluids are flowed directly into self-contained steel tanks on location.

Recently approval has been received from the Polish authorities to acquire approximately 407 km of 2D seismic on the concessions. The seismic program will further define basin structure and burial history as well as aid in individual well location selection. The term of the three Saponis concessions were also extended to provide Saponis enough time to acquire the seismic prior to drilling the second well on each concession. It is anticipated that the acquisition of this seismic will commence in the fourth quarter of this year.

"We are very encouraged by the initial results from the sidewall core tests on the Wytowno well," commented Dave Afseth, President and CEO of LNG. "The results of the core analyses as well as the analyses of the sidewall cores will enable us to design and implement an appropriate stimulation to flow test the wells later this year."

Oil & Gas Post

Promote Your Page Too

Eagle Oil Receives Initial Payment from Questus

- Eagle Oil Receives Initial Payment from Questus

Wednesday, July 06, 2011
Eagle Oil Holding Co., Inc.

Eagle Oil has received an initial payment from Questus under the Farmout Agreement between the Company and Questus.

Pursuant to the Farmout Agreement, Questus will now begin the reconditioning of an initial group of 15 oil wells at the Company's East Texas field. In addition, Questus will also service the compliance requirements of the Texas Rail Road Commission.

The Questus Agreement represents the major part of the Company's new strategy to capitalize on its oil assets through outsourcing the reconditioning of its oil well and restoring pumping operations with no additional capital investment by the Company. The Questus Agreement will potentially cover up to 120 wells. The Company is also waiting for work to commence under farmout agreements with two additional parties for up to 20 additional wells not covered under the Questus Agreement.

Oil & Gas Post

Promote Your Page Too
LINK

Penn Virginia Disappointed by Initial Marcellus Production Rates

- Penn Virginia Disappointed by Initial Marcellus Production Rates

Tuesday, June 28, 2011
Penn Virginia Corp.

Penn Virginia updated its activities in the Marcellus Shale.

Peak 24-hour production rates from our first three Marcellus horizontal wells, the Risser #A-1H, Risser #A-2H and Dunn #A-1H, were approximately 3.1, 2.8 and 4.0 million cubic feet (MMcf) per day, with an average rate over a 72-hour test period of 2.1, 1.7 and 2.7 MMcf per day, respectively. These three test wells are located in the central portion of our approximately 35,000 net acre position in Potter and Tioga Counties, Pennsylvania. Pipeline construction is in progress with sales expected to begin by early August. One additional well in the western portion of our acreage is currently waiting on completion. During the second half of 2011, we plan to test, initially with vertical wells, the eastern portion of our acreage, comprised of approximately 20,000 net acres.

H. Baird Whitehead, President and Chief Executive Officer, stated, "The Marcellus Shale test wells had initial production rates which fell short of our expectations. We will monitor longer term production once these wells are turned into the pipeline and determine if the reserves can support a development program in this immediate area. As important, we will begin testing our eastern acreage position during the second half of the year."

Oil & Gas Post

Promote Your Page Too

Kulczyk Oil Notes Initial Test Results at O-9 Well

- Kulczyk Oil Notes Initial Test Results at O-9 Well

Tuesday, June 28, 2011
Kulczyk Oil Ventures Inc.

Kulczyk Oil updated its activities at the Olgovskoye-9 well.

Highlights 

• a secondary target in the Lower Bashkirian reservoir section (the R37 unit) tested at a maximum rate of 1,200 thousand cubic feet per day ("Mcf/d") of gas through a 6mm choke and a stabilized rate of 762Mcf/d through a 5mm choke
• the successful testing of the R37 unit amounts to a new discovery as no reserves or resources have been previously attributed to the units within the Lower Bashkirian reservoir
• primary targets in the Middle Bashkirian section of the well are now ready for testing

R37 Reservoir Unit Discovery

The testing of the O-9 well started with a 5.5 meter thick reservoir unit in the Lower Bashkirian reservoir at a depth of approximately 2,560 meters(the R37 unit). While the R37 unit was a secondary target, it is interpreted to be present across the Olgovskoye license area. Consequently a successful test has material implications for Kulczyk Oil Ventures Inc. (the "Company" or "KOV")as no reserves or resources are currently attributed to this reservoir unit or other similar Lower Bashkirian units within the Olgovskoye license.

A 2 meter section of the R37 unit was perforated and tested over two periods of time. The first test (Test #1) flowed at a rate of 1,200 Mcf/d of gas through a 6mm choke and during Test #2 the R37 unit flowed at a stabilized rate of 762Mcf/d of gas through a 5mm choke. This is the first time that commercial rates of gas have been produced from the Lower Bashkirian reservoir section lying below the main producing horizons of the Olgovskoye field. The Company currently believes that the Lower Bashkirian reservoir section is composed of more than 7 reservoir units running across the Olgovskoye license area. While the Company believes that generally speaking the units in the Lower Bashkirian reservoir will require some form of stimulation to produce commercial rates of gas, it is notable that the R37 unit flowed commercial rates of gas without any form of stimulation and this successful test opens up a potential new resource base for the Company.

The Company's preliminary internal estimate of new Reserves for the R37 unit zone is more than 4 billion cubic feet ("Bcf"). RPS Energy plc, the Company's independent engineering consulting firm, has not assigned any Reserves or Resources to the Lower Bashkirian reservoir section of the Olgovskoye field area in past reports.

Progress of Testing Operations

The Company will now carry on testing of the primary Middle Bashkirian targets which produce elsewhere in the Olgovskoye Field. Testing will proceed shortly and is expected to be completed by the end of July.

The O-9 Well

The O-9 well is located approximately 1.2 kilometers to the northwest of the O-8 well. The O-9 well commenced drilling on March 5th and reached a total depth ("TD") of 2,638meters on April 4, 2011. The well was designed to test gas-bearing reservoirs in the Middle Bashkirian and further develop the gas production capability of the Olgovskoye Field.

The O-9 well was the second new well drilled in the Olgovskoye field since the Company acquired its interest in KUB-Gas in June 2010. It is part of a larger development program on the KUB-Gas assets through 2011. Olgovskoye-8, the first new well drilled, reached a TD of 2,780 meters in early January and encountered numerous gas zones. Testing of the O-8 will commence later in the third quarter after the testing of the O-9 well has been completed.

Dr. Trent Rehill, Vice President Geosciences of KOV stated that "the Company is very pleased with the initial test results of the O-9 well and is excited about the potential for growth in our gas reserves and production from units in the Lower Bashkirian reservoir".

Oil & Gas Post

Promote Your Page Too

Tag Concludes Initial Flow Testing at Sidewinder-4 Well

- Tag Concludes Initial Flow Testing at Sidewinder-4 Well

Thursday, June 09, 2011
TAG Oil Ltd.

TAG Oil reported the initial flow testing of the Sidewinder-4 discovery well, the third of four Sidewinder wells to be tested, is now complete. The Sidewinder oil and gas discovery is located in TAG Oil's Petroleum Exploration Permit 38748 in the Taranaki Basin, New Zealand.

The Sidewinder-4 exploration well was drilled to a depth of 1,410 meters (4,626 feet), targeting a fault bounded 3-D anomaly identified in the Mt. Messenger Formation. The well was drilled down-dip of Sidewinder-3 and encountered 19 meters of net oil-and-gas-charged sandstones, with no water column evident. A 4-Point Isochronal test achieved stabilized flow rates of 6.98 million cubic feet per day (~1163 BOE per day) with a 25% drawdown. These results are consistent with the other Sidewinder oil and gas discovery wells tested to date, as summarized below:

Sidewinder Discovery Flow Test Results

Sidewinder Well	Gas Flow Rate (MMcfpd)	BOE Flow Rate (boepd)	Final Drawdown Rate	Net O&G Encountered
Sidewinder-1	7.40	1,233	28%	14 meters
Sidewinder-2	Testing Underway	Testing Underway	Testing Underway	47 meters
Sidewinder-3	7.21	1,202	40%	15.4 meters
Sidewinder-4	6.98	1,163	25%	19 meters
Totals	21.59 MMcfpd	3,598 Boepd

Flow testing of the Sidewinder-2 discovery is currently underway. This well encountered the largest net pay of all Sidewinder wells to date, with 47 meters of oil-and-gas bearing sandstones. Five separate zones will be tested, including new zones both above and below the primary Sidewinder discovery zone.

Oil & Gas Post

Promote Your Page Too

Tag Completes Initial Flow Test at Sidewinder Well

- Tag Completes Initial Flow Test at Sidewinder Well

Thursday, June 02, 2011
TAG Oil Ltd.

TAG Oil reported that the initial flow test of the Sidewinder-3 discovery well is now complete. The Sidewinder-3 well is located in TAG Oil's 100% controlled Petroleum Exploration Permit 38748 in the Taranaki Basin, New Zealand, where TAG has now drilled four successful discovery wells to date.

Located 1.1 km to the south of the Sidewinder-1 discovery, the Sidewinder-3 well was drilled to a total depth of 2,160 meters (7,085 feet), encountering 15.4 meters (50 feet) of net gas-bearing sandstones. With the four wells drilled to date, the interpreted total hydrocarbon column at Sidewinder exceeds 60 meters (196 feet) in thickness, with no water column evident in any of the Sidewinder wells.

A 4-Point Isochronal test on the Sidewinder-3 discovery well achieved a stabilized flow rate of 7.2 million cubic feet per day (1200 BOE per day) with less than a 50% drawdown. These results are consistent with the Sidewinder-1 well flow test, which achieved stabilized flow rates of 8.5 million cubic feet of gas plus 44 barrels of oil per day (1461 BOE per day) from 14m (46 feet) of net pay encountered.

Further reservoir engineering analysis of the 4-point Isochronal test for the Sidewinder-1 well, calculated the absolute open flow rate to be 30 million cubic feet of gas per day or 5000 barrels of oil equivalent per day. A similar analysis will be completed on Sidewinder-3 once the down hole gauges are retrieved in approximately two weeks.

"The strong flow rates we are achieving in the Sidewinder wells support our decisions to expand the through put capabilities as well as fast-tracking the construction of the new production facilities. As a result, we are on-track to produce the first oil and gas from the Sidewinder discoveries by August 2011." Garth Johnson, TAG Oil CEO commented. "Our Sidewinder acreage is proving to be a very exciting and prolific discovery area that we believe can provide TAG with substantial near-term production increases, as well as significant reserve growth. We also look forward to flow testing the recent Sidewinder-2 and Sidewinder-4 discoveries, and continuing our pursuit of the many high-impact exploration opportunities TAG has identified on 3D seismic permit-wide."

TAG also reports that the service rig has now been moved onto the Sidewinder-4 discovery well for flow testing. The Sidewinder-4 penetration is approximately 1 km to the east of the Sidewinder-1 well and encountered 19 meters (62 feet) of net oil-and-gas bearing sandstones. Once the Sidewinder-4 flow test is complete, the service-rig will move to the Sidewinder-2 well, which encountered 47 meters (154 feet) of net oil-and-gas bearing sandstones to the west of Sidewinder-1 well.

Oil & Gas Post

Promote Your Page Too

Egdon Posts Initial Production Rates at Keddington

- Egdon Posts Initial Production Rates at Keddington

Friday, May 27, 2011
Egdon Resources plc

Egdon provided an update on production testing of the Keddington-4 well in Egdon's operated license PEDL005 (Remainder) located in Lincolnshire.

The Keddington-4 well was drilled as a re-entry and horizontal sidetrack from the Keddington-1Z "donor" well, during April 2011 and encountered a total of 120 meters of the primary reservoir Unit 1 sandstone and 65 meters of Unit 2.

Site reinstatement works have been completed and the Keddington-4 well commenced pumping operations on Monday, May 23, 2011 at 08.30 hours. After initial recovery of kill-brine and oil-based drilling mud, the well began free-flowing oil and gas through an adjustable choke and the pump was shut-off. The well has been shut-in periodically to observe pressure behavior. Free-flowing production over a flowing period of 68 hours to 07.30 on May 27, 2011 has yielded 647 barrels of oil along with 1,106,300 cubic feet of gas on a minimum choke setting. The production rate for the 24 hours to 07.30 hours on May 27, 2011 was measured at 234 barrels of oil per day ("bopd") and 518,000 cubic feet of gas per day ("cfg/d"). No formation water has been observed to date.

It is intended to continue to produce the Keddington-4 well over the coming few weeks to determine the optimum rate and methods of producing the well. Production from the adjacent Keddington-3z well, which was producing at constrained rates of 100 bopd and 650,000 cfg/d prior to being shut-in during the drilling operations, will resume in the coming weeks once stable production has been established from Keddington-4.

We will provide further updates once stable oil and gas rates for the field are established.

Egdon holds a 75% operated interest in PEDL005(Remainder). The joint venture partners are Terrain Energy Limited (15%) and Alba Resources Limited (10%), a wholly owned subsidiary of Nautical Petroleum.

Commenting on the production testing operations, Egdon's Managing Director Mark Abbott said, "We are pleased by these initial production results from the Keddington-4 well. The good oil rates, lack of any observed formation water and current gas production from the well are all encouraging. We will continue to flow and monitor the well over the next few weeks as we look to define the optimum production strategy for the well and the field as a whole."

Oil & Gas Post

Promote Your Page Too

Mart Notes Initial Test Results for Nigeria Well

Mart Notes Initial Test Results for Nigeria Well

Monday, April 25, 2011
Mart Resources Inc.

Mart Resources and its co-venturers, Midwestern O&G (Operator of the Umusadege field) and SunTrust Oil, reported encouraging initial test results from the first zone tested on the UMU-7 well located in the Umusadege field, onshore Nigeria.

The first test on the UMU-7 well was conducted on the XII sand, a 17 foot oil zone, which flowed at a stabilized rate of 2,459 barrels oil per day ("bopd") of 36 API gravity oil through 2 7/8 inch tubing on a 40/64 inch choke at a flowing tubing pressure of 180 psi. Basic sediment and water (BS&W) was 15% with gas/oil ratio of approximately 21 standard cubic feet per barrel.

Testing of the XIV sand is currently underway, with tests on the X and XVI to follow. Further updates will be provided on these sands once initial testing has been completed.

The UMU-7 well has been completed using a dual-tubing string configuration with the XVI and XIV sands completed in the 3 1⁄2 inch tubing string and the XII and X sands completed in the 2 7⁄8 inch tubing string. As a result of the completion technology used, the four zones that have been completed can be opened and closed at any time.

CAVU 1 Well Exceeds Initial Estimates

CAVU 1 Well Exceeds Initial Estimates

Monday, April 25, 2011
CAVU Resources Inc.

CAVU Resources announced that the CAVU 1 recently put into production exceeded the initial estimates. CAVU has also re-launched its 5 million dollar private placement to replace funds expended for the recent upgrades of the Chisholm lease, the Montana leases, wind energy projects and the completion of the FILO 1, CAVU's permitted 50,000 barrel a day saltwater disposal well (FILO 1).

CAVU recently had employees monitoring the flow rates of the Chisholm B 2, Nabors 1 and the CAVU 1 24 hours a days since they were put back into production. The Chisholm lease is currently producing about 3,000 barrels a day of fluid. The existing storage facilities and active saltwater well are at their current production capacity.

The recently completed upgrades allow for rapid expansion of the storage facilities. Once the planned chemical treatment programs are initiated and storage facilities are expanded, oil production could be increased. The $5 million dollar private placement originally launched last year has been restructured to sell ownership interest in the current Chisholm Lease, FILO 1, the Montana and Wind Energy projects. The proceeds are also designated to pay for the work that was financed and the original funds borrowed to purchase the properties.

With the completion of the FILO 1, CAVU will be able to increase production on all of its Chisholm wells, as well as the targeted recompletions and new wells. As reported earlier the company has 12,000 barrels a day of saltwater disposal usage committed for the FILO 1 well.

"The success of the Chisholm Lease project and the future potential of the FILO 1, Montana and wind energy projects should produce positive returns for the company by the end of 2011. We believe that by reducing the long and short term debt along raising new project capital with minimal dilution should increase investor interest in CAVU's stock," stated William Robinson.