Oilexco turns up oil at 15/26b-9 Kildare well
Oilexco Inc (C:OIL)
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Last Close 3/16/2007 $7.70
Monday March 19 2007 - News Release
Mr. Arthur Millholland reports
OILEXCO MAKES OIL DISCOVERY AT KILDARE
Oilexco Inc. has made an oil discovery in its 50-per-cent-owned Kildare prospect in block 15/26b in the U.K. central North Sea. Nexen Petroleum U.K. Ltd. owns the remaining 50-per-cent interest in the block, which was awarded jointly to the two companies in the 23rd U.K. offshore licensing round.
The 15/26b-9 well was drilled to a total depth of 14,330 feet. A significant reservoir section was encountered in the Upper Jurassic sand at a depth of 13,705 feet. A total of 91 feet of net pay from a gross section of 132 feet from the Upper Jurassic sand was penetrated by this well. Both well logs and wireline pressure measurements indicated that the entire Upper Jurassic reservoir sand was oil-bearing. No oil-water contact was intersected by the well. Oil samples were also successfully extracted from the wireline downhole sampler.
An Upper Jurassic sand interval of 125 feet was perforated and drill-stem tested. The test flowed oil at a rate of 4,216 barrels per day and associated gas at a rate of 3.1 million cubic feet per day through a 64/64-inch choke with a flowing tubing pressure of 460 pounds per square inch absolute. There was no water or sand produced during the test. Oilexco and its partner are currently discussing when to return to Kildare in order to drill additional appraisal wells to determine the size of the oil accumulation.
The discovery in the Upper Jurassic sand is in addition to the oil-bearing Ettrick sand that was encountered with the 15/26b-9 well. Oil samples were recovered and reservoir pressures were successfully recorded that tied this sand with the Ettrick sand in the original 15/26b-5 find made in the block in 1988 by another operator. The original 15/26b-5 well flowed oil at a rate of 2,650 barrels per day and associated gas at a rate of 3.5 million cubic feet per day from the Ettrick sand and is located approximately two kilometres north of the 15/26b-9 well drilled by Oilexco and its partner.
"We are very pleased with the results from the Kildare test," said Oilexco president and chief executive officer, Arthur Millholland. "The find also confirms our decision to secure the Ocean Guardian semi-submersible for a two year contract. Given the number of exploration and appraisal properties that Oilexco has, having two drilling vessels working full-time will allow us to quickly convert discoveries into developments and eventually into production," he said.
© 2007 Canjex Publishing Ltd.
