The "Open-hole" completion activity on the Slave Point/Sulphur Point Formations resulted in restrained natural gas flow rates due to significant water inflow. Had the operation been successful in segregating the inflow of water, the gas flow rates could have increased significantly. After two weeks of unsuccessful attempts to control the water the well was plugged back for up-hole potential in the shallower Debolt Formation. Completion and testing of the Debolt zone commenced on February 18, 2004 resulting in natural gas rates approaching 1 mmcfd, but with declining pressures and indications of a rather low permeability reservoir.
Although, the operator has elected to abandon the well and the option to earn a further interest in the balance of NXT's lands on the South Adsett prospect, NXT and partners maintain that the potential still exists in all three zones for improved production rates and will continue the evaluation work through additional seismic, farm-out or drilling.
George Liszicasz, CEO stated "We are not discouraged by the results by any means and in fact the SFD Technology performed as expected. We are pleased to see our SFD data regarding the structure and reservoir confirmed by drilling and we fully intend to continue our SFD exploration efforts in British Columbia and the Northwest Territories. Our primary objective remains the creation of value for shareholders. To accomplish that NXT needs to accelerate its programs by converting more prospects to discoveries per year. Thus, we are continuing our efforts to obtain additional financing for implementing our development plans. We must take full advantage of our SFD Technology to achieve these goals".
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