NEWS OUT
Jet Gold begins drilling Horizon Funk No. 1 well
2006-08-08 15:06 ET - News Release
Mr. Robert Card reports
HORIZON/FUNK #1 WELL NEARING TOTAL DEPTH -- LOGGING TO COMMENCE
Jet Gold Corp. commenced drilling at the Horizon Funk No. 1 well at the Funk prospect in Goliad county, Texas, on Saturday, Aug. 5. The Horizon Funk No. 1 well is a 2,500-foot well to test a strong gas anomaly covering approximately 120 acres in the Catahoula formation at an expected depth of 2,100 feet to 2,150 feet.
The well is expected to reach total depth today, Aug. 8, 2006, upon which logging shall commence. Once the results of the logs have been evaluated, a completion decision will be made.
This is the first well to be drilled as a result of the 3-D seismic evaluation completed on the 400-acre Funk prospect. Several other targets were identified as strong amplitude anomalies in the Yegua formation at a depth of 5,500 feet to 5,700 feet. As a result of the 3-D seismic, the operator, Horizon Industries, is also planning to drill a 6,000-foot well to test the first of three Yegua targets. The rig has been scheduled to commence drilling of the Horizon Funk No. 2 well immediately following the completion of drilling of the Horizon Funk No. 1 well.
About the Funk prospect
The Funk prospect is located in the G. Barrera survey A-2 in Goliad county and consists of two tracts of land comprising 240 acres and 160 acres. The Funk prospect is situated in the prolific Middle Yegua gas trend, a formation that has produced gas and condensate in the nearby Maetze Yegua, Perdido Creek and Jobar fields.
The Perdido Creek field is located 1-1/2 miles northeast of the Funk prospect. Perdido Creek hosts seven producing wells with cumulative production of approximately three billion cubic feet to four billion cubic feet and 80,000 barrels of oil and condensate from the Yegua sands. The best well in Perdido Creek, the Vrazel No. 1 well, produced 1.8 billion cubic feet and 30,000 barrels of oil and condensate from a 90-foot sand covering 36 acres. These Yegua sands appear to be similar to that underlying the Funk prospect which hosts 2-D-defined Yegua sand bodies of 35 acres to 50 acres in aerial extent.
The Maetze field, is located 3,500 feet to the southeast of the Funk lease. Total production from this field was approximately five billion cubic feet. The best well in this field, the Cron Dreier well, drilled in the early 1950s blew out for over six months releasing up to two billion cubic feet of gas before being shut in.
Jet Gold has acquired a 2.5-per-cent working interest in the Funk prospect with Horizon Industries as the operator. This is in addition to the 2.5-per-cent interest held in the Stewart lease also located in Goliad county.
Jet Gold is building an oil and gas cash flow base in addition to its interests in its Atlin and Myanmar gold exploration properties and development of its Naskeena coal prospect.