Source Spuds First Well in the Peace River Oil Sands District, Woking Gas Discovery Nears Production Tie in
Thursday February 15, 7:00 am ET
CALGARY, Alberta, Feb. 15 /PRNewswire-FirstCall/ -- The first well of a multi-well program in Harmon Valley, in the Peace River Oil Sands district, has commenced drilling to appraise the reservoir characteristic and to delineate the reservoir. Nabors Drilling has been contracted to drill the HZ Peace River 1-29-83-19 W5M well which was spudded this morning.
The first well of the proposed program, HZ Peace River 1-29-83-19 W5M, will be targeting the Bluesky - Gething formation. Core information and a horizontal leg will assist in developing a plan for a possible primary and secondary oil recovery scheme. The remaining wells of the program are expected to be drilled in late 2007 to allow for interpretation of the drilling results from this well. The Bluesky - Gething formation is believed to contain an estimated 9 billion barrels of oil in place in the Peace River Oil Sands District. The well will be drilled to a total vertical depth of 680 meters, and a horizontal leg of 745 meters.
Historical wells and well log data show that there could be up to 200 - 250 million barrels of original oil in place (OOIP) at the Harmon Valley asset. Historical wells and well log data have also displayed excellent core porosities and log porosities of 29% and 31% respectively with estimated permeability of up to 5,000 milliDarcies.
The Harmon Valley asset is situated 12 KM S.W. from Baytex Energy's heavy oil project, 20 KM S.S.W. of Shell Canada's Cadotte heavy oil project and 25 KM S.W. of BlackRock's Ventures heavy oil Project which was recently sold to Shell Canada.
Woking Alberta:
Construction on the Woking pipeline/facility will start at the end of next week, with first Production expected in about 3 weeks.
Expected production from this well is estimated at an initial restricted rate of 500-1000 mcf/day with NGLs of approximately 20 bbl/mmcf.
Source Petroleum, Inc. (OTC Bulletin Board: SOPO - News) holds a 37.5% interest in the Woking discovery.
