"Increasingly, Pacific Tiger is a growth story," said PTE President and CEO Michael Cvetanovic. "The large boost in reserves just one year after our first external audit is a strong foundation upon which to grow."
Mr. Cvetanovic noted that the increase is based on acquired seismic, development drilling and Government-ratification of exploration licenses. "The recently drilled N8 well increased our proven reserves in the Wichian Buri field. N7 added to both our proven and probable cases and also added reserves in a new zone, the G-Sandstone; and seismic data led to recognition of new reserves in the Si Thep field. The Thai Government ratification of our L33 and L44 exploration licenses now allows recognition of possible reserves."
Cvetanovic said the challenge for the Company now is now to maximize production from existing wells and lower its extraction costs.
In a first step to increase deliverability from the recently drilled horizontal wells N7 and N8, the Company reports that it will commence a chemical or enzyme wash in early May to facilitate well cleaning-up by removal of remnant drilling mud and filter cake.
"As is often the case with horizontal wells, they may not clean-up quickly and satisfactorily on their own," said Cvetanovic. "An enzyme wash is a first step in assisted clean-up. We are confident that with the right clean-up combination, we will see improved production rates. We know that the oil is there - we intersected a combined 500 meters of net pay in the N7 and N8 wells."
Cvetanovic anticipates the clean-up operation will take two to three weeks and the wells will be back on production by end of May. He noted that N8 has had variable results on production testing, initially ranging from 100 to 250 bopd. N7 continues to clog when put on pump and has yet to produce commercial amounts of oil. The Company anticipates favorable results once cleaned of mud.
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