PetroFrontier Corp. Provides Operational Update
PetroFrontier Corp. (“PetroFrontier”) announces that Statoil Australia Theta B.V. (“Statoil”), PetroFrontier’s joint venture partner and the operator of the 2014 work program and budget has completed testing operations at the OzBeta-1 well. The OzBeta-1 well was perforated over a 3 meter interval within the Arthur Creek Hot Shale from 1,347 to 1,350 meters depth. A small water based hydraulic stimulation was successfully completed and a total of 137 m of water and 14.1 tonnes of sand were pumped into the well. Testing operations, utilizing a coiled tubing conveyed jet pump were then carried out. A total of 157 m of water was produced with no measurable volume of hydrocarbons. No oil or gas was produced and Statoil has informed PetroFrontier that the OzBeta-1 well will now be abandoned.
These results are disappointing and technically challenging considering the positive hydrocarbon indicators measured while drilling and subsequently derived from log data.
Statoil will now proceed with completion and testing operations at the OzDelta-1 well, as it is now considered to be the technically preferred location over the OzAlpha-1 location as previously announced.
The OzDelta-1 well was drilled to a total vertical depth of 840 metres and encountered a combined total of approximately 98 metres of Lower Arthur Creek Hot Shale and Thorntonia formations. Multiple oil shows were recorded while drilling and a continuous coring operation recovered approximately 32 metres of core. PetroFrontier’s independent third party petrophysical analysis has identified a total net pay of approximately 19 metres within the Arthur Creek and Thorntonia formations utilizing a porosity cut off of 2% and a water saturation cut-off of 58%. Statoil has developed a completion and testing program for this well which includes perforating a three metre interval, performing a hydraulic stimulation and testing
the well with a jet pump.
The main objective of the completion is to test the concept of oil production from these formations which has yet to be proven. Subject to contractor availability, weather and regulatory approvals, testing operations are anticipated to be completed early in the fourth quarter of 2014.
Source: PetroFrontier Corp.