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Tyner produces gas on perforating Stephens No. 1 well

Mr. Paul Larkin reports

STEPHENS #1 WELL FLOWS GAS

Tyner Resources Ltd.'s Stephens No. 1 well, located in Floyd county, Texas, and operated by its wholly owned subsidiary, Tyner Texas Operating Company, has been perforated. The perforations were carried out as planned on a staged basis, in the lower and upper Lower Penn shale encountered in the well. Tyner has a 93.75-per-cent working interest in the Stephens well.

Upon perforating 156 feet (48 feet net) of the upper Penn shale, the well produced immediate gas to surface. Pressure bomb tests conducted at the perforations assessed a bottom-hole pressure of 3,027 pounds per square inch.

Tyner Texas set a packer to isolate the upper Penn Shale perforations in order to conduct a well test. The test indicated that the well produced gas at the following rates:

A.O.F. (absolute open flow) 1.5-inch choke;
20 pounds F.T.P., 1.5 million cubic feet per day with 37.5 barrels of condensate per day -- one-inch choke;
50 pounds F.T.P., one million cubic feet per day with 25 barrels of condensate per day -- 25/64-inch choke; and
100 pounds F.T.P., 400,000 cubic feet per day with 10 barrels of condensate per day.
Without fracture stimulation (frac) of any kind, these results are very encouraging for a new shale play. They further indicate the commercial potential of the Stephens well. After much analysis, Tyner Texas initiated consultation with an independent frac specialist to determine the need and potential effectiveness of an immediate frac of the well.

The decision to frac the well is now confirmed and Tyner Texas has commissioned Dowell Schlumberger to initiate the frac today. Tyner's primary reason to frac is to develop information on the full economic deliverability of gas from the shale. Based on the logs of the Stephens well, which indicate a higher hydrocarbon content in the upper Penn shale, Tyner Texas has decided not to frac the lower Penn shale at this time.

Upon frac completion, Tyner Texas intends to begin frac fluid flowback immediately and anticipates 20 to 25 days will be required to recover the frac fluid load. Well testing will begin, post frac, as soon as gas is produced at surface.

Based on Schlumberger's analysis of the logs from Tyner's second well, the Broseh No. 1, a completion rig is currently being scheduled and staking of a location for Tyner's third well has also been initiated.

© 2005 Canjex Publishing Ltd.