The well "Devlan Moose Lake D-07" is located in the Grandview Hill area, 270 kilometers northwest of Norman Wells. The Grandview Hills area is host to a number of documented hydrocarbon seeps at surface and geological studies suggest subsurface conditions may be favorable for the trapping of hydrocarbons in rocks of Devonian age. The well is projected to reach total depth at 800 meters, bottoming beneath the early Devonian Bear Rock formation.
In addition to its shallow Bear Rock target, Devlan has been diligently examining the deeper potential underlying EL 413. The company has in its seismic library a limited amount of conventional trade two-dimensional data covering parts of EL 413 and on this data has identified a substantial basement high covering a portion of the EL. The significance of the basement high is that it provides a trapping mechanism for Cambrian and Ordovician sediments in an onlapping configuration, and good reflectivity in the seismic record within the Cambrian-Ordovician section suggests the potential for the presence of reservoir quality rock flanking the high. A good analogy for this style of reservoir/trap geometry occurs in the often-prolific Granite Wash pools of north-central Alberta where Granite Wash sands onlap PreCambrian basement highs. The data from this initial project will provide valuable information with respect to stratigraphy and the development of seismic models related to a deeper test on EL 413.
With an expected spud date of August 28th, the mobilization of equipment and personnel has already begun. Initial site preparation is underway and expected to be completed by later next week. The drilling rig and support equipment will arrive on location by way of barges from Norman Wells then taken across matting to the site roughly 400 meters inland on the west side of the MacKenzie River. The duration of the project is expected to be one month from start to finish. Upon the completion of this well, the land tenure requirements for this 201,160 acre EL will be fulfilled until the year 2009. Hence, the Company can then take a measured approach with respect to its future exploration expenditures and thus take advantage of the expected construction of the MacKenzie Valley Pipeline.
This is a concerted undertaking by Devlan, the K'ahsho Got'ine District groups, Akita/Sahtu Drilling Ltd. and northern service companies to produce a cost effective project. As well as being more feasible than a winter drilling program, the project will have only minimal environmental impact while providing economic benefits to this northern district in a low season.
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