Corridor also announced that the McCully I-67 well, the 19(th) successful well in the McCully field, has been drilled to a total depth of 2821 meters in only 32 days. The well encountered approximately 26 meters of indicated net gas pay thickness in the Hiram Brook formation, including 12 meters in the "B" sand and the remainder in the "A", "C" and "D" sands. The well has been logged and cased to total depth in preparation for frac stimulation operations planned to be conducted at the well next year. Corridor and Potash Corporation of Saskatchewan are joint participants in the I-67 well.
Deep Dawson Settlement Test
The Nabors #4 drilling rig is currently on standby, awaiting government approval for the construction of a well pad at the O-76 location in preparation for drilling a deep well to a planned depth of 3500 meters to test the natural gas potential of both the Hiram Brook and Dawson Settlement Formations. The proposed O-76 well pad is located approximately 800 meters WSW of the McCully M-66 well. From there, a deep test is planned to be drilled to penetrate the Dawson Settlement Formation at a preferred location based on the new 3-D seismic acquired by Corridor this past summer, while also penetrating the Hiram Brook reservoir at a location expected to be a southwestward extension of the relatively higher permeable reservoirs encountered in the M-66 and K-66 wells. The O-76 well will be the 20(th) well drilled to date in the McCully field. Pending timely government approval, it is expected that drilling operations at O-76 will commence in mid November.
Additional Frac and Test Results
Corridor has now completed its current frac stimulation program, having fracced and conducted initial "partial clean-up" flow tests on eight McCully wells (M-66, J-66, K-66, J-67, B-58, E-57, D-57 and H-28) during the past two months. The fraccing operations were very successful, resulting in sand placements averaging in excess of 50 tons along with 500 cubic meters of frac fluids per interval fracced. The initial flow test results have been variable. The initial three wells fracced (M-66, J-66 and K-66) had sufficient formation permeability to readily lift the injected fluids (mainly water) residing within the induced fractures and the wellbore, resulting in strong initial flow performances. The remaining wells fracced (J-67, B-58, E-57, D-57 and H-28) had less natural formation permeability and, while successfully fracced, were less able to lift and expel the large amounts of residual frac fluids during initial flow testing. However, analysis of the flow test performances for these wells indicates the potential for substantially improved production performance once more of the remaining frac fluids in the wells have been cleaned up. Further clean-up of these fluids can be accomplished by either flowing the wells for extended periods of time and/or shutting the wells in for several months to await the dissipation of these fluids into the surrounding reservoir areas. Analyses indicate it will take a minimum of 100 days and up to 300 days of continuous flow to sufficiently dry out these wells to the point where they will perform optimally. This can be accomplished by placing these wells on production and knocking out the produced liquids in the gas plant once Stage 2 production to Maritimes & Northeast has been initiated. Alternatively, shutting in wells has been proven to be effective in the case of the D-48 and J-65 wells, where production performance improved substantially following extended shut-in periods. In either case, test performance diagnostics indicate that flow performance for these wells will improve significantly once residual frac fluids have been recovered or dispersed.
The flow test results for the eight wells are presented in the following table:
Sands Flow Choke Wellhead Transient Well Fracced Period Size Flow Rate Pressure Productivity Index ------------------------------------------------------------------------ (scf/d/psi(2) (hours) (mm) (mmscf/d) (psi) after 4 days) M-66 A & B 72 7.94 5.5 2138 1.263 (i) K-66 A 72 8.73 5.9 1895 1.115 (i) J-66 A & B 96 11.1 3.5 855 0.500 (i) J-67 A & B 86 6.35 0.6 555 (ii) B-58 B 34 7.15 1.3 1263 (ii) E-57 A 37 7.93 0.7 742 (ii) D-57 A 61 8.73 0.5 230 (ii) H-28 unnamed 46 7.15 0.3 470 (ii) (i) Denotes wells that have been properly tested and which have substantially cleaned up on initial testing. (ii) Denotes wells that require further testing and that still have significant quantities of frac fluids impacting flow rates and pressures.
The B-58 well has been fracced in both the "A" and "B" sands. However, subsequent mechanical problems in the well resulted in a blockage in the wellbore between the "A" and "B" sands. Efforts to eliminate the blockage have failed and consequently the well is being completed as a single zone "B" producer at this time.
The wells listed in the table above are in addition to the six McCully wells (O-66, C-67, G-67, K-57, D-48 and J-65) which have been fracced, completed and tested in previous years and which will also be tied into the new gas plant as part of Stage 2 development.
The H-28 well, which was drilled in 2002, is located approximately 5 kilometers east of the nearest Phase 2 planned producer (D-48), and consequently is not planned to be tied into the gas plant at this time.
Corridor is a junior oil and gas exploration and production company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec, and offshore in the Gulf of St. Lawrence.
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