Wednesday, 22nd September 2010
Update Ash Creek Oil Field Re-development
HIGHLIGHTS
• A work-over rig is currently on the Trusler #8 well, the first injection well to be completed in the field re-development plan.
• Two sets of shallow perforations are being cemented prior to completing the deeper Shannon reservoirs for injection.
• Site preparations are in hand for the installation of the production and injection facilities, and new storage tanks.
BACKGROUND INFORMATION
A background summary, Elk’s field re-development plans, the potential oil volumes being targeted by this program, and forward plans were provided to the ASX in the release dated 15th April 2010. The re-development activities were last updated on the 15th September 2010; these releases and others associated with the re-entry of the Trusler #1 well and its extended production test (EPT) are also available on the Company’s website.
PROGRESS
A work-over rig has been contracted to carry out work at the Trusler #8 and Trusler #1 wells at Ash Creek as the first step in re-establishing oil production from the field. The rig was mobilised to the field on Thursday 16th September and rigged up on the Trusler #8 well. The Trusler #8 well is to be established as an injection well to re-inject the produced water separated from oil produced firstly from the Shannon reservoirs in the Trusler #1 well, and then from other future production wells. Before the Trusler #8 can be used to re-inject water back into the Shannon reservoirs, perforations shot in the shallower Parkman and Eagle formations to investigate their hydrocarbon potential in this well in 2008, need to be isolated by cement squeeze operations. The cement squeeze of the Parkman has been completed and this cement is currently being drilled out prior to repeating the operation across the Eagle perforations. The work-over of the Trusler #8 well is expected to be completed early next week with the Shannon formation ready to accept re-injected produced water. The rig will then move to the Trusler #1 well to install a large capacity down-hole pump for production. A free-water knock out vessel and a vertical heater-treater have been purchased and a construction contractor engaged to install these units on location. Three storage tanks with a total capacity of 1,200 barrels are on order and are expected to be delivered and installed within 2 weeks.
On behalf of the Board.
Andy Rigg
MD/CEO
