Argosy Provides Operational Update
Argosy Energy Inc. says its southern Alberta Bakken prospect continues to dominate the company’s operational activities.
It recently drilled a further horizontal well to add to its present Bakken holdings. The well is located approximately six miles northwest and on trend with the Indra Oil & Gas Ltd. well that has produced 247,000 bbls of oil to date.
Argosy has now drilled one vertical well and two horizontal wells (all 100 per cent working interest) and has continued to add land and 3D seismic coverage on its extensive land base of 43 sections in this area.
The recently drilled well had an 11-stage water based fracture completion performed along its 1,150 metre horizontal section. The horizontal length encountered a thickened Big Valley dolomite section with porosity up to 18 per cent and was also found to cross numerous fault blocks.
As of Feb. 22, the well had been on a preliminary flowback period for four days. The last 24 hours saw an oil rate of 585 bbls per day of 36 degree API oil. In addition to the oil rate, 390 bbls of completion load fluid was also recovered during that time period. To date, 45 per cent of the 24,000 bbls of total load completion fluid has been recovered. The well is presently shut-in waiting on drill out operations on its multi-stage tools. Further flow and buildup will be done to continue to evaluate the well once it has been cleaned out.
Argosy has 5.5 contiguous sections of land next to this discovery.
The company’s initial Big Valley horizontal well is presently shut-in waiting on a pump workover to improve gas handling abilities. Prior to being shut-in, the well was producing 80 bbls of oil per day and 210 mcf of gas per day.
The well also produces 50 bbls per day of completion fluid. It is anticipated that the oil rate will improve once an upgraded bottomhole pump assembly is run. Cumulative production for this well is at 12,500 bbls over four months of production. Argosy said it continues to be optimistic about the results seen on the well and is evaluating future development locations on its land.