Dugas and Leblanc #3 Rig Contracted
Napoleonville-Dugas & Leblanc #3 Well, Assumption Parish, Louisiana, Non Operator 39.5% WI
The Board is pleased to advise that the Dugas & Leblanc #3 well rig has been secured and is expected to spud in the next 10 days (see diagram contained in the ASX announcement).
The Dugas & Leblanc #3 well will be drilled updip of the #2 well and will target the gas in the M, N, Stray and O sands. Production will start at the lowest known sand, the O, and as each zone depletes the zone above will be completed. The expectation is that the D&L #3 well will be a gas well with the D&L #2 well recovering the oil in the “M” Sand. The D&L #2 well is currently completed and producing in the “N” sand. Once this production depletes the 41ft of net pay in the “M” sand will be completed for production.
The potential oil recoverable from the Dugas & Leblanc field is estimated at 7 BCF and 305,000 BBLS and will be recoverable over intervals detailed in the ASX announcement.
The “N” Sand has proven to date in D&L #2 to exhibit a strong water drive. However, the dominant drive mechanism in the remaining sands is an unknown variable. The D&L #2 well is presently producing at 115 boe/d (being 30 bbl/d and 1.8 mmcfg/d) through a 17/64 inch choke with ~395 bsw/d from the “N” sand. Cumulative production from the “N” sand to date has been 134 MMCFG and 5,000 BBL Oil.
The high permeability and porosity of the sands indicate potential flow rates of over 4,000 mcfgd in the D&L #3 well resulting in significant cash flow generation.
Partners in the D&L #3 well are:
Company - WI
Grand Gulf Energy Ltd - 39.5%
Golden Gate Petroleum Ltd - 15%
Other Partners - 45.50%
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