Archer has been advised by South Bay Resources (the Operator) that they will be plugging and abandoning the SBRES WEASEL 2-17-58-20 well on the Radway Prospect in Alberta, Canada.
As announced earlier Archer participated in the drilling of the SBRES WEASEL 2-17-58-20 well which "encountered approximately seven meters of apparent pay" in the well bore. The Operator determined that the well logs bore similar characteristics to other natural gas wells they had completed in the area, and therefore Archer agreed to participate in the completion and testing of the well.
Upon testing it was shown that the sands contained heavy oil rather than natural gas. Lab analysis after production testing determined the oil that was not of sufficient gravity to be commercially profitable. Archer is a 35% working interest owner in the well.
Claude Perrier, CEO, stated, "Since we believe that the pay in the well will be, at best, marginally profitable, we will be abandoning the Radway Prospect to deploy our assets into projects that meet our economic objectives. In that regard, we are currently working out final agreements on our major project in the previously announced Matagorda Bay Prospect in the Texas Gulf of Mexico. We have agreed to extend the closing date of this opportunity to January 17th to allow all documentation to be properly completed. Details should be forthcoming on that program after closing."
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