Radial: Repairs Completed at Peru Block 100
Radial Energy Inc. reported that repairs and replacement of drilling equipment at the Company's Block 100 oil project in Peru has been completed. Subject to final logistics, restart and completion of drilling at the Huaya 100-1X well is projected to begin as early as January 19th.
As announced in December, drilling of Radial Energy's first well on the Huaya Block 100 project reached a depth of 235 feet before experiencing mechanical problems that required a temporary suspension while parts were sourced and repairs were made. The operator reported that surface casing was set and cemented and the drill hole was in excellent condition.
Radial Energy has been advised that the fully repaired rig power head and hydraulic power units for the mud pumps were inspected and approved. The last of the equipment required for restart, they arrived on site on Sunday, January 14th. The drilling contractor is en route to the well. Reassembly of the rig will begin today with completion expected by January 18th. Once positive field tests are completed the remaining teams will return to the wellhead to commence drilling. Management believes drilling operations could resume as early as January 19th if events proceed as expected. Once drilling resumes the Company plans to reach a target depth of approximately 950 feet within 3 to 5 days and then proceed to logging and production testing.
Radial President G. Leigh Lyons commented: "We are pleased to report that the repairs have been completed and all of the equipment is on site for reassembly, enabling us to resume drilling operations at the Huaya 100-1X well in very short order. Preliminary mud log interpretation indicates that the well location is approximately 12.5 meters high to the original well drilled on the flank of the structure that production tested 38 API gravity oil from the top of the target Vivian formation reservoir, meaning that the well appears structurally in line with our geological prognosis. We are eager to get the bit back in the ground to conclude the Huaya 100-1X test, which targets an estimated 15.3 million gross barrels of trapped oil reserves classified by third party reserve assessments as Proved Undeveloped. We look forward to keeping shareholders apprised of our progress."
Radial Energy identifies, acquires and develops low-risk oil and natural gas exploration and development opportunities throughout the Americas.
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