Local News A $1.5-million onshore well may not have been the home run that Forent Energy Ltd. was hoping for in Colchester County.
But the Calgary-based junior petroleum company discovered enough intriguing hints of oil to continue exploring for hydrocarbons in the Stewiacke area.
“We found significant natural gas kicks and live oil in the mud tank,” Forent president Tom Lester said in an interview Monday. “We didn’t see anything that says ‘don’t drill a second well.’ ”
The drilling results weren’t all good news. Forent’s drilling logs showed limited porosity and permeability in the Colchester County rock, making oil production from the well highly unlikely.
But Forent’s geologists think that they may have discovered something, in the larger sense, that is more important: oil-bearing reefs similar to the geological structures found in the fabled Leduc oilfield in Alberta.
Lester said the company thinks that it may have struck the first onshore hydrocarbon-rich reef ever discovered at deeper depths in Nova Scotia.
“We’re just pleased as punch to have hit a reef,” he said. “It confirms our geophysical information is valid.”
The casing will remain in the well so, if needed, it can be re-entered at some later date to drill directionally into other nearby areas for further appraisal.
Lester said that Forent will now take the new information and factor it into its geological knowledge base about the field.
The second well, which is expected to cost around $1.4 million, will be drilled in the Upper Stewiacke area, 10-12 kilometres east of the first well.
Forent hopes the next well will find a more porous and permeable structure that would allow oil to flow more freely during production.
Lester said that second well should be underway by the end of March. The company’s drilling program for now has ground to a halt because of weight restrictions imposed on vehicles travelling on Nova Scotia roads during the spring thaw.
Since December, Forent has raised about $2.8 million for exploration through private placements.
The company’s shares were trading at around 12.5 cents each late Monday on the TSX Venture exchange.