Imperial announced that the operation to deepen the disposal well at the Company's Green Tide Salt Water Disposal Facility ("SWDF") continues to be drilled ahead vertically from the sidetrack.
As of 18:00 local time on August 24, 2011 the well was at 5,700 feet drilling ahead toward the target formation. To date no major issues have been encountered. The Company anticipates it will reach a total depth of 7,500 feet (approximately 500 feet into the Ellenburger formation) at which point the aim will be to set casing and cement from the bottom of casing back up to 5,700 feet. Once completed, the current rig will be released and replaced by a smaller workover rig which will attempt to drill further into the Ellenburger formation to reach some high porosity strands within the formation to enable maximum potential disposal capacity.
Subject to success, commercial disposal operations are expected to start immediately targeting full disposal capacity of 15,000 barrels per day as quickly as possible. At full capacity, the Company believes the Green Tide SWDF has the potential to generate significant cash flow at relatively low operating costs.
The Green Tide SWDF
The Green Tide SWDF is conveniently located for the disposal of large volumes of salt water generated from essential fracture stimulation operations on Barnett Shale gas wells. There are approximately 6,000 such Barnett wells within 20 miles of the SWDF.
Imperial plans to reopen Green Tide to dispose of up to 15,000 barrels of salt water a day. The Company's acquisition and development of the low run-time Green Tide assets and disposal permit is expected to save in excess of $5,000,000, compared to a new build cost.
Green Tide is one of two key projects identified as transformational for Imperial (the other being the Company's Oklahoma project).
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