Target Energy Limited Provides Update on Its Fairway Project, West Texas
April 14, 2014 - West Perth, Australia
US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to provide an operations update on its Fairway Project in West Texas.
- Drilling at BOA North #4 has concluded with the well reaching Total Depth at 3,093.8m (10,150ft) on 10 April 2014. Preliminary analysis of wireline log data has confirmed that the well has encountered potential pay in the Fusselman Carbonate, which has been intersected 8.5 metres (28 feet) updip to the BOA 12 #1 well, as well as in numerous zones within the Wolfberry section. The well is to be completed as an oil producer. On release, the rig will move directly to the Wagga Wagga #2 location.
- As announced on 26 March 2014, plans are progressing for a fracture stimulation of the Wolfberry section in the BOA 12 #3 well after testing in the Fusselman Carbonate recovered oil in sub-commercial quantities.
- At Wagga Wagga #1, a 7-stage fracture stimulation of the Wolfberry section was performed on 28 March 2014. The stimulation covered an interval of 500 metres, using approximately 25,000 barrels of load water. To date approximately 30% of the load water has been recovered, with the well now on pump.
Managing Director Laurence Roe commented on the operations: "The frac at Wagga Wagga #1 went well. We started recovering oil after only 3 days of flow-back, with a cut of up to 12%. There are still 17,000 barrels of load water left to recover, but we expect the oil cut to increase as more of the load-water is produced. In the meantime, we are preparing to drill the Wagga Wagga #2 well, which should commence operations later in the week.
"BOA North #4 looks promising with good shows throughout the Wolfberry section and with the Fusselman Carbonate being encountered around 28 feet high to the nearby BOA 12 #1 well. We're presently running production casing and will bring in a completion rig, probably in a week or two, to commence testing the well.
"At BOA 12 #3 we are proceeding with a frac of the Wolfberry section, which is expected to be underway within a month."
NOTE: In accordance with ASX Listing Rules, any hydrocarbon reserves and/or drilling update information in this report has been reviewed and signed off by Mr. Laurence Roe, BSc, Managing Director of Target Energy, who is a member of the Society of Exploration Geophysicists and has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears.
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