DUGAS & LEBLANC #3 SUCCESFUL PRODUCTION TESTING
Napoleonville Dugas & Leblanc #3 Well, Assumption Parish, Louisiana, Non Operator 39.4% WI
The Dugas & Leblanc #3 well spudded on 16 April 2011 and reached TVD of 8,000ft (TD 8,920ft) on Saturday, 30 April 2011.
The Board is pleased to advise that the well was perforated and completed in a 10ft "Stray B" Sand and tested at 1,000 mcfd with a constant flowing tubing pressure of 2800 psi on a 1/8 th inch choke. It made a trace of condensate and water. A gravel pack was successfully installed and the operator is presently running production tubing and finalising connection of production facilities. The expectation is sales can commence within 2 to 3 weeks.
Further evaluation of the well logs (including the recently completed cased hole logs) indicate that the well crossed a fault into another fault block below in the "M" sand. The well has accordingly logged pay in the "M", "Stray "A" sand and a new "Stray B" sand with a total of 31ft of gas and 33ft of oil net pay having been identified. The majority of net pay is in the "M" sand with 18ft gas and 33ft of oil. The potential presence of oil in the "M" sand is an interesting and positive development indicating the structure has flattened which is supported by the "M" sand being 13ft high to the D&L#1 well.
At this time the potential reserves of the newly identified Stray B Sand are unknown and the well flow rates and depletion will be watched closely to evaluate its economic reserves.
The "O" and "N" sands will be tested via a sidetrack following depletion of hydrocarbons in the Stray and M Sands.
The Company will revise its estimated recoverable hydrocarbons in due course.
In D&L #2 the "N" Sand has proven to exhibit strong water drive. However, the dominant drive mechanism in the remaining sands is an unknown variable.
Partners in the Dugas & Leblanc #3 well:
Grand Gulf Energy Ltd (ASX: GGE) 39.40% WI
Golden Gate Petroleum Ltd (ASX: GGP) 15.00% WI
Other Partners et al 45.60% WI