Testing operations began today at Golden State Resources' (ASX: GDN) Paradox Basin #2 gas discovery in Utah.
The objective of testing of Paradox Basin #2 is determine the commerciality of the gas found to date. If testing is successful then the Golden Eagle gas field will be bought into full commercial production.
The produced gases have a high heating value and are low in inert gases and will require minimal treatment prior to delivery to the Williams gas pipeline which is six miles from Paradox Basin #2. The Williams gas pipelines transport 12 per cent of daily US gas consumption.
Investors may recall that PB #2 had gas shows in 11 zones and a 95ft Net Gas Pay found in the following zones:
- 61ft Barker Creek Formation
- 4.5ft Akah Formation
- 14ft Chimney Rock Formation
- 1ft Gothic Shale
- 14ft upper Ismay Formation
Independent experts RPS Energy recommended proposed fracture stimulation testing of three zones: Upper Ismay, Chimney
Rock and Barker Creek 1,2 and 3. F.J. Brown & Associates has organised the operations and logistics and will work with RPS on the completion. Rig 234 has been retained for the completion.
Each test will require approximately 12 to 14 days during which time the zone will be completed, perforated and fracture stimulated before and extended clean-up followed by a single point flow test and shut-in period. The testing will be conducted sequentially up the hole.
Higher natural flow rates are expected from the Ismay and Chimney Rock Formations and the upper section of the Barker Creek Formation based on analysis to date.
Testing of the deepest gas zone in the Barker Creek Formation will establish a structural base line from which the extent of the gas accumulation can be estimated. Data from Paradox Basin #2 drilling and testing will be used to prepare a revised reserves report by RPS.
RPS originally estimated a Gas Initially In Place (GIIP) estimate for Golden Eagle Prospect of 118 BCF P50. RPS Energy believes that reserves will substantially increase as a result of Paradox Basin #2 95’ of net pay including a newly discovered zone in the Chimney Rock Formation.
Interestingly, GDN will mobilise a separate completions rig to complete the work-over on Paradox #1 well which has proven commercial flow rates from the Ismay Formation.
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