Ash Creek Oil Field Re-development Update Trusler #8 well
HIGHLIGHTS
• Swab testing of the Lower Shannon formation achieved oil cuts in the order of 10%
• A pump is to be installed to run an extended production test of the Lower Shannon formation.
• The well is expected to be completed as a production well and not an injection well as previously expected.
• Trusler #9 is now planned as the first injection well; approval to re-enter it is currently with the Wyoming Oil and Gas Conservation Commission (WOGCC).
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 7th October 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 Upper Shannon perforations in Trusler #8 were squeezed with cement when the well was abandoned in 1998, whilst the Lower Shannon perforations were left open and isolated from the shallower perforations with a cast iron bridge plug. The work-over rig on the Trusler #8 well drilled out the cast iron bridge plug and swab tested the Lower Shannon formation before and after re perforating the Lower Shannon formation. Initially the oil content of the swabbed fluid was erratic but after re-perforating with modern perforating guns, the swabbed fluid contained in the order of 10% oil and the in-flow rate was approximately 150 barrels of fluid per day (BFPD). The swabbing results of this well, down dip from the Trusler #1 production well, warrant production testing; a pumping unit from the Grieve field is to be moved next week and installed on Trusler #8 well to undertake extended production testing of the Lower Shannon. Once the productivity of the Lower Shannon of the Trusler #8 well has been established, this process will be repeated on the Upper Shannon after it has also been re-perforated.
This change in the program has resulted from the fact that Trusler #8 appears to have the potential to be an oil production well rather than a water injection well.
The larger down-hole pump is expected to be moved to location and installed on Trusler #1 production this week.
On behalf of the Board.
Andy Rigg MD/CEO
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