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Exploration & Development — Quick Takes
San Joaquin Paloma deep test flows gas-condensate
Australian explorers appear to have a gas-condensate discovery after having tested the first two of eight potential hydrocarbon pay zones in California's San Joaquin basin.
Neon Energy Ltd., Perth, and Solimar Energy Ltd., Melbourne, ran two production tests on the Fruitvale shale and Lower Stevens sandstone at the Paloma Deep Sidetrack-2 wellbore. The well went to a total depth of 13,320 ft, 310 ft into the Fruitvale shale on the west side of giant Paloma oil and gas field in Kern County (OGJ Online, Nov. 30, 2011).
On the two production tests run to date, hydrocarbons flowed to surface unassisted at maximum rates of 1.9 MMcfd of gas and 226 b/d of condensate, but downhole operational issues have prevented the companies from determining which interval delivered the hydrocarbons, Solimar said.
Debris obstructed and hindered the flow of hydrocarbons and prevented stabilized rates of production from being achieved. Encouraged, the companies have rigged up a coiled tubing workover unit to clean up the wellbore before resuming tests of the Lower Stevens.
Neon previously said the potential pay intervals to be production-tested in this well or future wells include the Paloma sands, Middle Stevens, Round Mountain, Lower Stevens, Fruitvale shale, Western Flank, Antelope shale, Lower Antelope shale, and Tulare sands. It said it encountered a column of more than 200 ft of continuous potential oil pay with a high reservoir net to gross ratio in the Lower Stevens.
Neon is operator with 75% working interest in the project. Solimar is participating with a 25% working interest and is paying a promoted share of the dry hole and completion-testing costs up to an agreed cost cap.
Green River basin Niobrara activity yielding oil
Encouraging reports of Niobrara oil production are emerging from the eastern Green River basin, west and northwest of where EOG Resources Inc. had its initial success in Colorado's North Park basin.
Entek Energy Ltd., Perth, in late December 2011 said it planned to acquire 28,000 gross acres, 19,000 net acres in the basin that would bring its total holding to 110,000 gross acres, 91,000 net acres.
Before the acquisition, Entek Energy held 55% working interest and Emerald Oil & Gas NL, Perth, held 45% in a Niobrara acreage position that lies along the Colorado-Wyoming state line. Numerous other public and private operators hold large positions in the general area in both states.
Emerald Oil & Gas noted that Quicksilver Resources Inc., Fort Worth, revealed sustained Niobrara production rates of more than 500 b/d of oil from a horizontal well and 100 b/d from single-zone completions in several vertical wells in Colorado within 25 miles south of Emerald's acreage.
Emerald Oil & Gas said, "The directors of Emerald consider the Quicksilver production results to be significant for EMR, as they indicate that a frac treatment design, effective in the Green River Basin Niobrara shale oil play, has now been demonstrated and this provides clear evidence of the production potential that could be expected from wells on EMR acreage."
Emerald Oil & Gas describes the Green River basin as having target Niobrara oil pay sections in four benches totaling 1,100 ft thick, several times thicker than those in the Denver-Julesburg basin. Fractured intrusives have also been encountered in the area. It said its acreage is also prospective for coalbed methane and conventional oil and gas.
Ordovician light oil flows at Amadeus reentry
Central Petroleum Ltd., Perth, reported a maximum sustained flow rate of 300 b/d of 40° gravity light, sweet crude oil on a 24⁄64-in. choke in the western Amadeus basin of Australia.
The flow, with a low water cut, came from a 230-m lateral in tight Ordovician Lower Stairway sandstone at 2,543 m true vertical depth at the Surprise-1 reentry. The well is on Northern Territory Block EPA-115 about 190 km west of Mereenie oil and gas field. Central reported no evidence of hydrogen sulfide.
The company is still recovering drilling fluid from the horizontal section and plans further well clean-up and extended production tests.
Central will suspend the well as soon as it cleans up and, subject to government approvals, will fast-track additional storage to allow for an EPT to begin.
Central is also assessing the unconventional shale oil and gas potential of drilling samples taken from the Horn Valley siltstone, where the presence of hydrocarbons and elevated organic material in sections of this formation was previously noted (OGJ, Oct. 4, 2010, p. 48).
Central said it is determining its next exploratory moves, pursuing a TSX Ventures Exchange listing, and discussing farmouts with major companies.
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