Abita Prospect, Non Operator 20%WI (15% after payout)
Highlights
Logs indicate:
- 112ft of net gas pay over 7 intervals.
- Further 21ft of possible net oil pay over 2 intervals in thin beds
Preliminary resource estimate of 7.9 BCF of gas and possible 350,000 – 500,000 bbl of oil.
The Abita #1 well was been partially logged on 14 June 2011 (bottom of logged interval 10,100ft) indicating a significant discovery. The well has encountered 160ft of gross gas pay (112ft net) in 7 intervals between the depths of 8,500ft and 10,100ft TVD in the Miocene sands. In addition, two potential oil bearing intervals with a total net thickness of 21ft (gross 55ft) may also be present but require further evaluation to confirm the presence of recoverable oil.
Although the logging tools could not reach TD (10,700ft TVD) previous log information recorded while running into the hole suggest no other zones of commercial interest were penetrated in the well below 10,100ft TVD.
Based on preliminary data, results are:
- 112ft net gas pay in 7 pay sands between 7ft and 30ft thick
- 2 further zones of thin bed oil pay with possible net oil interval of 21ft
- The well has confirmed the pre-drill mapping though some sands were penetrated higher than predicted
GGE’s estimate of the likely resources of this discovery (unaudited) is 7.9 BCF with the potential for a further 350,000 - 500,000 bbls in the two possible oil bearing zones.
The operator of the well is carrying out thin bed analysis with the RT scanner log and will use this data to determine the net oil pay in the oil bearing intervals to quantify the resource potential.
The Abita feature is a northern extension to Coquille Bay Field (produced 8 MMBLS & 15 BCFG). The feature is a down thrown drag structure defined by 3D seismic across a shallow syncline from the main field. The well will be structurally high to wells that produce to the south across the syncline. Once on production the well is likely to be dual completed and production rates are estimated to be between 200-400 bblsd and 100-5,000mcfd depending on the sands producing. It is likely only one well will be required to drain the structure.
The well is being operated by Clayton Williams Energy Inc (NASDAQ: CWEI) in Plaquemines Parish, Louisiana. The Company’s share of the initial well costs is estimated at ~US$750,000 (includes entry costs). The Company’s share of completion and facilities costs are a further US$840,000. Due to the well being in a wet location, completion of facilities and commencement of production will take up to 7 months.
Napoleonville Salt Dome
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.
Dugas & Leblanc #3 (39.4% WI, non operator)
The D&L#3 well is expected to be on production during June 2011. The well is expected to recover 400,000 bbls oil and 1.2 BCFG at flow rates of 200-400 bbls per day and 1,000 - 4,000 mcfd.
Drilling Plan
Future wells at Napoleonville include:
Desiree #1 - Chasing an accumulation of oil in a well defined updip block from an interval that produced 2.3 million barrels equivalent. Accumulation likely to be 600,000 to 800,000 bbls. Gas potential in deeper Cris zones. Anticipate strong flow rates. Low risk both in drilling ops and G&G.
Josephine #1 - This amplitude anomaly is a similar response anomaly to the Dugas & Leblanc Discovery. Reserve is estimated at 5BCFE. Low risk both in drilling ops and G&G.