Amity Oil Spuds Ellis-2 Well in Oklahoma

Amity expects to spuds the Ellis-2 well in Oklahoma this week. Ellis-2 is the follow up to the discovery drilled at Ellis-1 and is in the adjacent section south of Ellis-1, approximately one mile away.

The objective of Ellis-2 is to evaluate the lower Morrow B, Morrow C, D, E and Itoka sands that are interpreted to be gas bearing in Ellis-1. This well will be drilled to a similar total depth of approximately 11,500 feet.

Ellis-2 offsets a previously drilled well which flowed gas at a rate of approximately 2.4 MMscf/d. Other nearby wells have Morrow gas pay interpreted from the wireline logs, but were either not tested or failed to flow, interpreted to be a consequence of the poor drilling practices employed at the time.

The use of synthetic oil based drilling mud and a superior well design should eliminate the risk of formation damage and maximize well productivity.

Ellis-2 is targeting un-risked reserves of between 2.0 Bcf and 10 Bcf in the P90 to P10 range per well in the Morrow B only. The most likely estimate of the un-risked gas reserves are between 3 and 5 Bcf per well. Should additional pay be confirmed in the other Morrow targets then additional gas volumes would be attributable to this well. Our working interest in this project is 99.5% and net revenue interest, after royalties 77.19%.


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