Long awaited NRRegent Ventures' well is capable of 250,000 cubic ft/d
Ticker Symbol: C:REV
Regent Ventures' well is capable of 250,000 cubic ft/d
Regent Ventures Ltd (C:REV)
Shares Issued 80,154,608
Last Close 11/30/2010
.14
Tuesday November 30 2010 - News Release
Mr. Richard Wilson reports
UPDATE ON LOUISIANA
Regent Ventures Ltd. is providing an update on the status of the two wells it has drilled on its interest in the Francis Thompson lease in the Delhi field in Northern Louisiana.
Francis Thompson #1 Well
Following the well being drilled, logged and cased for production, more detailed logging and testing of the well was carried out and the decision was made to perforate a clean Natural Gas Sand located in the Lower Barrier Sand formation. Although the Company logged over 200' of sand in the Lower Barrier Formation, the decision was made to perforate the upper 10' from 3840-3850 below a shale break and above possible water infiltration in the lower portion of the formation.
After several days of attempting to swab the well with a work over rig, the rig encountered problems getting the swab cups down low enough due to natural gas pressure. Because of this, a decision was made on October 25, 2010 to perform a nitrogen frac displacement to clean the well up for production. Haliburton was contracted by the operator to perform this procedure on October 27, 2010. This nitrogen cleanup was successful and a lower perimeter gas flow test was performed the following week. Initial testing was performed by the operator using 3/16" choke and showed the well capable of producing a minimum of 250 thousand cubic feet per day. An open flow test, as well as other tests using 1/4" choke or greater, have not been performed to date due to the risk of damaging the productive gas sand. The operator has contracted with surveyors and sub contractors to facilitate the survey and location of lease gathering lines that will ultimately gather all lease gas into Colombia Gulf's sales line located adjacent to our lease.
Francis Thompson #2 Well
On the completion rig being moved to the #2 well, logging and additional testing were completed and the well perforated in one of the identified zones. The initial perforated zone, although oil bearing, did not produce oil in that zone at an economically feasible rate. The decision was then made to treat the well with 1200 gallons of 15% Hydrochloric Acid and allowed to sit. An economic flow rate was not achieved and the decision was made to pinch off this zone and perforate and test one of the other identified zones that showed to be productive on the well logs.
Continuing
As described above, the development of the #1 and #2 wells is moving ahead and progressing in the expected time lines. The activities described above are usual in the development phase of a well and part of what adds to the time required to successfully complete a well.
Although we are in the wet season of the year and limited with some of the work that can be carried out, there is substantial work ongoing on the Thompson Lease. As mentioned, survey work is being performed and natural gas lines are being designed for the #1 well.
The Company's operator is also using this time to negotiate and acquire leasehold equipment that will be used on entering the operational and production phase of the project. Compressor and de-hydration units are being designed for optimal production from the #1 well as it is also expected to produce natural gas liquids, or condensates, along with the natural gas, which have to be separated from the gas before inputting into the transmission line, and which are a very marketable product on their own. It is expected that oil and gas field materials and supplies, such as steel pipe and tanks, will increase in price next year and, on that basis, the operator has purchased most of the leasehold tangibles that will be required for production.
Because of the Company's success on the Francis Thompson Lease, mineral owners in the area have offered to the Company inclusion in a major play of shallow oil located approximately twelve miles from the Francis Thompson Lease. The Company is currently negotiating terms for involvement in that play. The Company will also be contracting with a Louisiana Reservoir Engineering firm to calculate and provide a report of the newly discovered oil and gas reserves from the Francis Thompson Lease.
It should be noted that usually only one, if, as in this case, there are several zones showing as productive on the well logs, will be placed in production at a time. The remaining zones are kept in reserve and will be brought online in the future when production from the first zone decreases to a point of being uneconomic. The Company is very pleased that upon placing the #1 and #2 well in production, each well will have these additional zones remaining as proven non-producing reserves for development in the future.
? 2010 Canjex Publishing Ltd.