Louisiana
Napoleonville Salt Dome Project
The Napoleonville Salt Dome has the potential to contain 520 billion cubic feet (BCF) of gas and 4.5 million barrels of oil (MMBO) from over 60 prospects and leads which have been identified so far from Grand Gulf’s proprietary 50 square mile 3D seismic survey.
Grand Gulf Energy has a 34.5% interest in the Napoleonville Salt Dome Project in Assumption Parish, Louisiana. The Napoleonville Salt Dome has historically produced some 188 billion cubic feet of gas and 20 million barrels of oil. It was one of the last remaining salt domes in Louisiana without 3D seismic prior to the 50.4 square mile 3D seismic acquisition program undertaken by Grand Gulf and its Joint Venture partners in 2007. The primary targeted sands are Tex W, Big Hum, Operc, Cris R II – VII, Marg Vag, Camerina and Miogyp with sands commencing at 4,000ft to 14,000ft.
Since 2007 when the 3D seismic acquisition was completed the Joint Venture has been involved in working up leads and prospects over the Salt Dome. Numerous lead and prospects have been generated, from prospects updip of existing production wells to new exploration prospects identified on the edges of the salt dome and sands under wings of the salt dome.
As of February 2010, approximately 5,700 acres of leases had been exercised from Grand Gulf and partners 35,300 optioned acres pertaining to the seismic shoot. Relationships with the various landowners previously under option have been maintained in preparation to lease newly developed prospects as they advance.
Drilling Plan
The first well is expected to spud in the first week of May 2010. The first three wells are targeting a total of 9.2 BCF of gas and 1.6 MMBO of oil at shallow depths from 5,000 feet to 10,000 feet with over half the targeted potential classified as low risk proven undeveloped reserves (PUD’s).
Well #1
The first well is testing the Big Hum and Operc Sands with an amplitude anomaly targeting 1.2 MMBO and 3 BCF gas. If the well is successful initial flow rates are expected to be around the 200+ barrels of oil per day and 1,000 MCF per day. Total dry hole costs are estimated at US$800,000. The estimated spud date is the first week of May 2010.
Well #2
The second well is testing the Operc C and Cris R II Sands as primary objectives with 300,000 bbls and 1.2 bcf of gas classified as a PUD with further upside in secondary exploration objectives in the Marg A and Chris R I of 300,000 bbl oil and 1.2 BCF gas. If the well is successful flow rates are expected to be around 200+ bbl oil and 500 mcf gas per day. Total dry hole costs are estimated at US$700,000.
Well #3
The third well is testing the Big Hum sand with 5 BCF gas classified as a PUD and targeting further exploration upside in the Tex W of 100,000 bbl oil. If the well is successful flow rates are expected to be around 5,000 mcf gas and 100+ bbl oil per day. Total dry hole costs are estimated at US$800,000.
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Please refer to Monthly Operations Reports and Drilling Updates lodged for more information.
Please refer to ASX announcements and drilling updates for information on this program.