Primera tests 1,450 bopd at Snowcap-1Primera tests 1,450 bopd at Snowcap-1
2011-02-15 13:47 PT - News Release
Shares issued 56,014,750
PTT Close 2011-02-14 C$ 0.50
Shares issued 56,014,750PTT Close 2011-02-14 C$ 0.50
Mr. Phil Collins reports
PRIMERA ENERGY RESOURCES LTD. (TSX-V:PTT) ANNOUNCES FIRST TRINIDAD ONSHORE LIGHT OIL DISCOVERY IN 50 YEARS AND TEST RESULTS FOR CORY MORUGA SNOWCAP-1 WELL AND DRILLING PLANS FOR BLOCK WD-4
Primera Energy Resources Ltd. is providing the following corporate update.
Cory Moruga block
Completion testing of Snowcap-1, the second exploration well drilled on the block, is substantially complete. This well was designed to assess and evaluate the production potential of three different play types, namely the Eocene, Footwall Herrera and Hangingwall Herrera zones. Following drilling to total depth of 8,600 feet, four potentially productive zones were tested. The primary zone of interest (hangingwall) in the Herrera formation was selectively perforated at 4,597 feet to 4,603 feet and tested initial rates of up to 1,450 barrels of oil per day and gas at rates of up to 6.2 million cubic feet per day. The zone was then flow tested over a six-day period on a three-point test, producing 37-degree API gravity oil at a rate stabilizing around 578 barrels per day and a gas rate of 4.6 million cubic feet per day (total of 1,345 barrels of oil equivalent per day at a 6-to-1 conversion). Tubing head pressure at the end of the test was 600 pounds per square inch. The zone produced no water on the test. Deeper secondary targets, namely the Eocene and Footwall Herrera zones, produced little or no hydrocarbons in commercial quantities.
The corporation views these results as very significant as the first well tested in the exploration program. Follow-up appraisal well(s) is (are) required to determine the Hangingwall Herrera reservoir areal extent, oil leg, gas cap structural positions and potential hydrocarbon height.
The corporation will be meeting with the operator under the joint operating agreement to determine the next steps to get this well on stream and to do follow-up drilling.
Parex Resources (Trinidad) Ltd., the operator of the Cory Moruga block under the farm-out agreement, is mobilizing a drilling rig back to the Firecrown-1 location. As reported earlier, based on open hole wireline logs, mud logs and cutting samples, this well encountered hydrocarbon-bearing sandstones with oil shows from measured depths of approximately 6,600 feet to 7,200 feet and 8,150 feet to 8,275 feet in the Herrera formation. Drilling was suspended due to wellbore integrity problems. The well will be deepened to the commitment depth of 10,500 feet to investigate deeper prospective horizons, following which all potentially productive zones will be tested including the Herrera formation.
In addition to the Snowcap-1 discovery and Firecrown-1 pending operations, the corporation has several additional high-impact prospects that have been seismically identified on the block, and regulatory approval is being sought to conduct future exploration drilling.
The corporation has a 16.2-per-cent working interest in the block (postearning).
Block WD-4
With the recent tax incentives to Primera's fiscal regime for drilling becoming effective Jan. 1, 2011, Primera is mobilizing to resume its drilling program for the WD-4 block. These recent revisions to fiscal regime will improve profitability of the block.
The company is currently sourcing a drilling rig to commence its 2011 drilling campaign, having received the necessary regulatory approvals. The first well to be drilled, PS 131 RD, will target the prolific Lower Forest formation and will be drilled to a total depth of 5,600 feet.
Primera has identified 12 sites for its present drilling program and is continuing with its reservoir characterization study, which is aimed primarily at identifying additional drilling opportunities on the block.
A barrel of oil equivalent is derived by converting gas to oil in the ratio of 6,000 cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, especially in various international jurisdictions.
We seek Safe Harbor.