Xtract Energy PLC (AIM: XTR) said further technical interpretation of test work at the Sarikiz-2 well drilled by the group’s Turkish joint venture group Extrem Energy AS has increased the number of intervals still to be tested to eight from the previously envisaged seven.
Xtract shares were trading up nearly 15 percent in morning deals.
Testing of the interval at 1,728-1,733 metres found it was producing associated carbon dioxide and technical interpretation established there was a minor fault causing carbon dioxide to penetrate the deeper oil reservoirs.
Subsequent testing of the higher interval at 1,710-1,715 metres showed production flow without associated carbon dioxide. Initial indications are that a pumped oil flow rate of approximately 180 barrels per day could be achieved from that interval alone.
The remaining sandstone intervals lie in a structure between the depth range 1,483 to 1,697 metres.
Log indications are favourable for the remaining intervals but the ability to produce from them will remain unknown until they are tested. At this time, it is reasonable to expect that the total production flow rate from the well will meet or exceed the pre-drill estimate of 500bbl/day.
All operations are controlled and operated by Merty Energy, Xtract's joint venture partner in Extrem Energy. Xtract currently holds 27 percent of Extrem and has the option of increasing its shareholding to 34 percent by a further investment of US$1.75 million before August 5 2009.
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