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Neon Energy Limited (ASX:NEN) Joint Venture partner, Solimar Energy, releases statement

Potential oil pay increased to over 135 feet – SGY preparing multi zone test program

HIGHLIGHTS
- Detailed Analysis of wireline logs of the Solimar 76-33 well is complete, indicating potential for hydrocarbon pay additional to that previously announced.

- The wireline data matched to shows recorded from the drill cuttings (Mudlog) indicates potential hydrocarbon pay totalling over 135 feet in 6 zones including all main sandstone reservoirs originally targeted by the well.

- Athough there is limited comparable wireline log data available for historic offset wells in the adjacent Guijarral Hills field, the log anomalies observed in the 76-33 well are comparable to those in zones that produced oil and gas in offset wells.

- The zones of interest have been sealed behind a 7 inch liner and the design of a staged, multi zone testing program is advanced.

- Design of the test program will be completed within the next week after which contracts will be let for the key testing services including a testing rig.

Solimar Energy Limited (ASX: SGY) (“Solimar”) is pleased to announce that evaluation of wireline logs run at total depth of 10,550 feet in the Solimar 76-33 has been completed indicating potential for over 135 feet of hydrocarbon pay within six zones. This represents more than double original estimates with potential hydrocarbon pay indicated in all the main sandstone zones originally targeted by the well.
 
Despite limited comparable quality wireline log data from historic wells in the adjacent Guijarral Hills field the log anomalies observed in the 76-33 are comparable to those observed in offset producing wells.
 
The potential pay zones have been protected behind a 7 inch completion casing string and design of a staged, multi zone flow testing program is advanced. This testing program will make provision for testing selected zones firstly unstimulated and then if necessary with fraccing reservoir stimulation techniques.
 
Design of the test program is expected to be complete within the next week following which contracts will be let for all key testing services including mobilisation of a testing rig. Further detail about the testing program will be announced at that time.
 
It is necessary to conduct this flow test program to determine whether the potential hydrocarbon pay zones have high saturations of hydrocarbons and the capacity to flow at commercial rates.
 
Partners in the Guijarral Hills project, at post drill equities will be:

- Solimar Energy LLC (Operator) 35%

- Blast Energy Services 50%

- Neon Energy (ASX:NEN) 15%

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