Update Ash Creek Oil Field Re-development
HIGHLIGHTS
• The work-over rig is currently drilling out cement plugs in the Trusler #8 well (future injection well) to gain access to the Upper and Lower Shannon reservoirs.
• The first set of shallow perforations has been isolated and the cement placed across the second set of shallow perforations is currently being drilled.
• Right of Way (ROW) access for the new flow lines from Trusler #1 and Trusler #8 has been approved by both the rancher and lease holder affected by the work.
BACKGROUND INFORMATION A background summary, Elk Petroleum Limited’s (ASX:ELK) 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 22nd 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 The work-over rig on the Trusler #8 future water injection well successfully isolated the open shallow Parkman formation in the well by squeezing cement across and into the Parkman perforations. The excess cement was drilled out and the casing was pressure tested to confirm the squeeze was successful. The cementing operation was repeated for the deeper open Eagle formation this time employing a cement retainer for the placement of the cement across and into the Eagle perforations. Drilling up the cement retainer has taken longer than scheduled but is expected to be completed to-morrow after which both the deeper Upper and Lower Shannon reservoirs will be opened by drilling through the cement plugs above these target formations. The work-overs of the Trusler #8 well and of the Trusler #1 well (future producer) are expected to be completed next week. By this time the production facilities should also be delivered and installed. Delivery of the three oil storage tanks is also scheduled for next week.
