Target Energy disclosed Friday that the timeline for its onshore Fairway Project will be delayed, amid a myriad of problems which include: technical issues in dealing with swelling shales, problems in reaching an agreement on permit negotiations and difficulties in dealing with cold conditions.
Target noted in a statement that while drilling is progressing in the Sydney-1 well, the company has experienced issues with swelling shales and gravels in the shallower of the well section.
Commenting on Sydney-1's progress, the company's Managing Director Laurence Roe said: "We have now put that section behind casing, which has eliminated those problems but we were unable to recover some of the drilling assembly below the casing and we are now sidetracking around it."
Sydney-1 has been drilled to a current depth of 2,518 feet and an intermediate casing has been run to 2,468 feet. Target started sidetrack operations in the well at 2,518 feet.
Meanwhile, the company is unable to proceed with the drilling of its Darwin-3 well, as it unable to reach an agreement with the landowner of the permit.
"It looks unlikely that we will be able to complete the permitting in time to drill [Darwin-3] immediately after Sydney-1. We will schedule the drilling there as soon as possible, once we have the permit in hand," Roe said.
Target's operations at its Darwin-1 and Darwin-2 wells are progressing more smoothly.
The company has completed re-entry operations at Darwin-2 and a completion rig has been mobilized to the well site to undertake flow testing and to complete the well for production. Darwin-2 is designed to test the Wolfberry section, which exhibited strong oil shows in the adjacent Darwin-1 well.
Construction of gas pipeline is already completed at the Darwin-1 site, and a gas crew is preparing to hook the pipeline up to the well. Target forecasts that Darwin-1 will start production at a rate of 160 barrels of oil per day.
Commenting on general weather conditions, Roe said: "The Christmas period, combined with some winter weather, has contributed to operations moving more slowly than we originally anticipated. Nonetheless, we are progressing on all fronts."
The Darwin-3 well will be drilled less than a mile away east from the Darwin-1 well. Sydney-1 is sited 6 miles, south-southeast of the Darwin wells.
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