Canadian Imperial Venture V.CQV.H

The Western Star this morning (Kirby Mercer)

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Collapse causes production test halt at Garden Hill Post a comment FRANK GALE The Western Star CAPE ST. GEORGE While production testing has come to a halt at the Sidetrack 2 well at Garden Hill South here, company officials are still optimistic about prospects. Kirby Mercer, vice-president of Canadian Imperial Venture Corp. (CIVC) said up to the time the well ceased flowing it has produced 4,315 barrels of oil and 15.1 cubic feet of gas. “The good news is that we believe the well stopped producing due to a collapse in the open hole, which is really a mechanical plug and not because there is a lack of oil or gas in the reservoir,” he said. Mercer said a preliminary analysis of the well production data by CIVC’s engineering consultant, Trimble Engineering of Calgary, Alberta (TEAL) suggests the current lack of liquid flow is likely due to one of several possible mechanical problems in the wellbore and/or the wellbore-reservoir interface. He said what’s encouraging is there is no evidence of water, waxing or salt problems as was experienced in the past. He said TEAL has concluded significant reservoir depletion is unlikely. Mercer said they now have to do a further synopsis to remedy this problem and depending on the type of rock, they could probably treat it with acid; however, it may mean having to bring a rig back in if it can’t be solved that way. He said they probably should have put down a liner and may have to do that now if they can’t get the affected area cleared. “Basically, we’re in the stage of getting a costing and analysis to go ahead with an approved program to fix it. The rig is currently released and if a rig is needed we would have to bring one back,” he said. Mercer said the line of thought is that the plugging is in one of the higher horizons where shale might have collapsed. He said they are in the early stage of a synopsis of what may have gone wrong, but need more investigation.