Equator Exploration Suspends Bilabri D2 Development Well

Bulford Dolphin
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Peak Petroleum Industries Nigeria Limited and Equator Exploration Limited reports that the Bilabri D2 well was drilled to a deviated depth of 2,912 meters (2,578 True Vertical Depth). The well was logged successfully but as it encountered the C1 sands 48 meters shallower than expected it was unable to test for oil in the C1 objective. However, the well encountered approximately an 8 meter column of oil in the C2 sands of the reservoir. The C2 oil is of excellent quality with a 39 degree API. The existence of this oil column is significant in that it was not anticipated to encounter oil bearing portions of the C2 sands at this location. The well was subsequently sidetracked for geological reasons to a deviated depth of 3,220 meters (2,386 meters True Vertical Depth). Operations were ceased after the bottom-hole drilling assembly became stuck and could not be recovered.

The well was suspended for future sidetracking and completion as a C2 production well for the Bilabri development. Evaluations of the drilling results are ongoing. The Bulford Dolphin will leave the D2 drill site and begin work on the next appraisal well. This next well, the Bilabri D3 well, is anticipated as having similar depths and objectives as the D2 well. It is expected that the rig will return to the D2 well in early 2007 to complete the well as a production well to be tied into the Bilabri development.

The D2 well is the culmination of a two well drilling commitment in which Equator has committed to fund the cost of two wells to earn a 40% economic interest in the Bilabri field area.

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