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California: Neon reports Paloma field test rates

Neon Energy Ltd., Perth, reported test flow rates from three wells in Paloma field in Kern County, Calif., and looks forward to further testing.

Testing of the shallow gas sand in the Paloma-3 well resulted in a maximum, unassisted flow of 2.2 MMcfd. Neon said it “expects to commercialize the gas on the back of a greater Paloma development, and has signed a gas sales agreement with a local purchaser.” Two shallow gas sands remain to be tested.

At the Paloma Deep-2 well, the company recovered 36° gravity oil and a small gas flow from the McDonald sandstone. Pressure data suggest that the formation has relatively low permeability, but Neon said it may be commercialized as part of a full-field development.

Neon is preparing to test the Fruitvale formation and the Lower Stevens B sandstone, the primary objectives of the Paloma Deep-2 well. Tests of those zones in Paloma Deep-1 achieved maximum unassisted flows of 1.9 MMcfd of gas and 226 b/d of condensate.

At Paloma Deep-1 the extended test of the Lower Antelope shale recovered 131 bbl of oil, and the well was shut in to monitor pressure build-up. The test will be resumed shortly with maximum drawdown to determine the reservoir’s full deliverability potential of the reservoir, and the data will help determine the commercial viability of this unconventional zone. Then Neon will test the uppermost Paloma sand.

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