"We are very pleased with the estimates provided by Ryder Scott Company, a leading US company for providing independent estimates of reserves, and is in-line with our expectations," commented Bruce Falkenstein, Vice President Exploration & Geology. "The delineation of the field through drilling our initial seven development wells, combined with results of the extended production testing planned for our wells, is expected to prove up additional reserves from the larger resource base Ryder Scott has estimated for the field." The SA-5 and SA-17 are currently being drilled on proved undeveloped acreage, and if successful will add to the overall production and revenues but are not expected to significantly add to our proved reserves. The four additional wells are planned to be drilled following the completion of SA-5 and SA-17, and if successful they are expected to add proved reserves. "If these ultimate resources can be proved, full field development may require over 50 wells to be drilled during the life of the field."
The SA-5 is currently at a depth of 4,700 feet in a crestal location in the field between SA-1 and SA-2. The SA-17 has reached its first casing point at a depth of 760 feet and will continue on its drilling program during the weekend. SA-17 is a twinning of well 29 that was plugged last year due to mechanical problems. The drilling of both wells started in March, with a target completion in 120-160 days.
In SA-4, 420 feet has been perforated in the lower zones of the KT2 and the equipment is now in place at the well to begin the clean-up. The subcontractor Schlumberger is expected to begin acid stimulation work this weekend. The equipment will then be moved to SA-2 to complete the initial perforations of 450 feet in the lower zones of the KT2, to be followed by the clean-up and acid stimulation. The same completion equipment will then be used to re-complete SA-1 as a dual zone producer by the end of April.
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