The Board is pleased to advise that the Port Hudson-1 well has spud and is presently drilling ahead at 2,023 feet. The well will be drilled to a total depth of 10,500 feet straight hole. The well is expected to be drilled over the next 3 weeks.
The Company has a 15 percent WI in this low risk development project with an estimated resource of 500,000 barrels (bbls) of oil.
This Project is located in East Baton Rouge Parish, Louisiana in the Port Hudson Field (810 BCFG & 92 MMBO). The well is targeting multiple Upper Wilcox sands that produce in several productive analogs. Production from these analogs is up to 1,000,000 bbls of oil.
The Project was generated from re-processed, proprietary seismic. The sand deposition is uniform in the area targeting multiple individual sands ranging in thickness from 10 feet to 25 feet.
The potential net reserves to Grand Gulf are 40,000 bbls to 75,000 bbls of oil representing a low risk project. Flow rates are estimated at 200 barrels of oil per day (bod) to 250 bod. The net revenue interest is 74 percent.
The well is being drilled on a turnkey basis with the Company’s share of dry hole well costs fixed at $232,000. In a success case, the Company’s share of completion and facilities costs is estimated to be a further $70,000.
Pipeline facilities are present in the area and the well is likely to be put on production within 2 months of completion.