Based on the Company's current understanding, the well will be economic to produce and together with the completion of a successful sidetrack of Well 1X in early 2006, will lead to the commercial development of the Las Casas Field, within License 6-93.
Well 3X is Taghmen's first oil discovery and the first new exploration well drilled on the Las Casas structure within License 6-93 in Guatemala. It was drilled to a total depth of 9,300 feet. The well was logged and three pay zones were identified. Only one of these has been perforated so far.
The well has now been "swabbed" for five days resulting in a calculated daily flow rate of 100 bopd. It is planned to perform an acid treatment to stimulate production further. This will be followed by the installation of a Progressive Cavity Pump and the well will then be put on a long term production test. It is anticipated that the use of a pump will increase production from the well materially. The use of pumps to maintain production is standard procedure in Guatemala.
With an API of 40 º, this is the highest quality oil found to date in Guatemala and should therefore command a price close to world prices.
The necessary infrastructure exists on site to allow the immediate production, storage and sale of the crude oil produced.
In addition to the sidetrack of Well 1X, the Company is also planning a seismic program over the remainder of License 6-93, to confirm further drilling locations.
Nicholas Gay, President and CEO of Taghmen Energy Plc:
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