By OGJ editors
HOUSTON, Mar. 16 -- Galleon Energy Inc., Calgary, plans to develop a light oil discovery near Puskwa, east of Grande Prairie, Alta.
The 16-32-71-26w5m well flowed 2,559 boe/d, 90% 38° gravity oil, through a 10.32-mm choke from 33 ft of Devonian Beaverhill Lake oil pay with 14% weighted average porosity. Reservoir pressure drawdown was 10% during the test. TD is 10,354 ft.
Logs indicated that three other formations including Devonian Granite Wash are gas bearing. The zones have not been tested.
Granite Wash flowed 2.7 MMscfd of sweet gas and 75 boe/d of condensate at a previous well 3 miles northeast.
Galleon will drill at least 10-12 wells to delineate the pool and contracted two rigs for continuous drilling. Full development, based on 26-30 wells at $1.5 million/well, is expected to cost $59-65 million including $20 million in facilities.
Production is to start by July 1 at 500-1,000 boe/d and reach 2,000-4,000 boe/d by yearend and 4,000-8,000 boe/d in 2007.
A gas plant to handle 10 MMscfd of Granite Wash gas is to be built in June, and a battery to handle 10,000 b/d of Beaverhill Lake oil is to be completed by yearend.
