CYGAM Energy Inc. (TSX:V.CYG, Stock Forum) announces completion of first horizontal well at TT Field in the Bir Ben Tartar Concession in Tunisia.
Through a wholly-owned subsidiary, CYGAM holds a 14% working interest in the Concession, located in southern Tunisia.
According to the press release, the operator, Chinook Energy Inc. (TSX:T.CKE, Stock Forum) has advised that the first horizontal well targeting the Ordovician in the Ghadames Basin was successfully completed on July 1.
The final measured depth was 2,435 metres with a horizontal section of 950 metres.
A Packer's Plus system was successfully run on the well in anticipation of a multi-stage fracture stimulation of the Ordovician Jeffara and Bir Ben Tartar Formations.
Completion operations commenced on July 8 and fracturing operations were completed on July 15 after successfully placing a total of 385,285lbs of sand over eight frac intervals spaced along the 950 metre horizontal section.
The operator reports that the frac ports have been successfully drilled out, the full length of the well is open and expects to commence flowing the well back within 48 hours.
The well is the first multi-stage hydraulically fractured horizontal well in Tunisia. Despite the challenging logistics, manpower and equipment conditions, the operation was completed successfully and represents a valid test of this proven technology in a new application.
The target reservoir at the TT Field is a thick, low permeability heterogeneous clastic reservoir that demonstrates commercial flow rates from stimulated vertical wells. The application of horizontal wells in this low permeability conventional reservoir is an attempt to increase the production rate and ultimate recovery relative to what may be achieved with fractured vertical wells.
The Foradex 14 rig has spudded the second horizontal well on the TT Field on July 7. The second well is approaching the intermediate casing point at the top of the Lower Jeffara Formation and is anticipated to drill an 800 to 1,000 metre horizontal section with a total measured depth at TD of approximately 2,600 metres.
CYGAM is a Calgary-based exploration company with extensive international exploration permits and a producing property in Tunisia.
On Monday, CYGAM's stock was up 40% and was trading at $0.225 a share. The company has a market cap of $23 million, based on 102.9 million shares outstanding. The 52-week high and low was $0.35 and $0.145 respectively.