News...more oil to come
January 11, 2012 09:00 ET
Solimar Energy Limited: Hydrocarbon Flows from First Zones Tested at Paloma
Highlights
- Two Production tests have been conducted so far on two of the eight potential hydrocarbon pay zones identified, the Fruitvale Shale and Lower Stevens Sandstone formations.
- Hydrocarbons have flowed to surface, unassisted at a maximum rate of 1.9 MMCFD of gas and 226 BOPD of light oil/condensate.
- The tests have been limited by downhole mechanical difficulties due to debris obstructing perforations and hindering the flow of hydrocarbons.
- A coiled tubing workover unit has been mobilised with the aim to clean up the wellbore before resuming testing of the Lower Stevens Sandstone formation.
MELBOURNE, AUSTRALIA--(Marketwire - Jan. 11, 2012) -
Commenting on the testing of the Paloma Deep ST/2 well, Solimar CEO John Begg said:
"The results at this stage, although preliminary, are very promising and we are hopeful of achieving stabilised flows at commercial rates once the mechanical issues can be overcome. It is particularly pleasing that hydrocarbons have flowed to surface without stimulation of the test zones. Given also the number of additional zones yet to be tested in the well and the Company's expanded land position in the play (details of which will be published in due course) the Paloma project could rapidly evolve as a significant field development and production and cash generating asset for the Company."