According to David Jagger, Radial's drilling representative, the previously damaged power head was tested at Atlas-Copco's office in Lima after the new gear assembly was installed and performed without vibration in conformity to specifications and was accepted by the Operator (CCP) for shipment to the field. Subsequently, the power head has been successfully installed and tested onsite at the rig in eastern Peru. Routine, pre-drilling testing of the hydraulic pumps is scheduled for today. All required operating personnel are onsite, and remaining contractor personnel are scheduled to arrive by February 15th.
The Huaya 100-1X well, which reached a depth of 235 feet before experiencing mechanical problems, is planned to reach a total depth of approximately 950 feet. The primary reservoir target is the Vivian sandstone formation, which is estimated to be 155-160 feet thick in the area according to the Huaya 4X well that drilled through the zone and tested 38° API gravity oil from approximately 12 feet of pay at the top of the zone. Preliminary mud log interpretation provided by the Operator indicates that the Huaya 100-1X well may be between 11-13 meters high to the original Huaya 4X well, according to geological comparisons of the top Pozo Shale between the 4X and Huaya 100-1X wells.
According to Radial's independent reserve engineers, Gustavson Associates, "The Huaya Anticline contains an oil deposit in the Vivian Sandstone, discovered by the Huaya 16A-39-4X Well (4X Well) in late 1984 by PetroPeru, which tested at about 5 barrels per day of 38° API crude from a 5-meter interval above the oil/water contact. According to interpretation of several 2D seismic lines crisscrossing the area, it should be possible to move up dip by about 50 meters at the crest of the mapped structure. Additional potential pay zones within the anticline include the Cachiyacu and Casa Blanca formations. All three of these formation are productive at the Maquia Field, located about 35 kilometers to the southeast...Gustavson's log analysis indicates a total of 1.8 meters net pay, and 48 meters of net reservoir in the 4X well, with average porosity greater than 28%, and water saturation in the pay zone of about 11%."
Gustavson has assigned 15,300,000 barrels of gross oil to the structure under the P90, or proven undeveloped category. With Radial's recently announced purchase of an additional 3% participation in the project bringing the Company's participating interest to 23%, the Company's net oil after royalties is estimated to be 3,343,050 barrels for the P90 category.
Radial management have also advanced $25,000 for the purchase and shipment of additional down hole pipe in order to drill and complete the Huaya 100-2X well soon after the completion of the Huaya 100-1X well, in order to minimize the costs to re-mobilize equipment and personnel.
Radial President, G. Leigh Lyons, commented, 'The Huaya 100-1X well should resume drilling on Thursday or Friday and be drilling over the weekend. If all goes well, total depth should be reached in a few days, and we should begin logging and testing the well soon thereafter. The mechanical problems and subsequent delays that we have experienced, and have recently solved with this well, are prime examples of why project risks in the oil and gas business encompass more than the geological risks of a given project. Our participation in the project was decided on the basis of several positive geological factors including, almost certain seal, trapping, hydrocarbons and structural closure. Another key determinant was that the drilling depth for wells on this structure is less than 1,000 feet, making the economics of the deal very enticing given the shallow targets.
Radial Energy identifies, acquires and develops low risk oil and natural gas exploration and development opportunities throughout the Americas. The Company's innovative strategy involves targeting overlooked or under-developed reserves that are under the radar of multinational oil companies and out of the reach of small independents.
The Company targets prospective oil and natural gas opportunities in historically productive regions with a focus on identifying previously drilled but undeveloped exploratory wells that, due to factors at the time of initial drilling including the absence of pipeline infrastructure, lack of modern recovery technology, poor geological or engineering interpretation or low oil and gas prices, were not fully exploited.
Most Popular Articles
From the Career Center
Jobs that may interest you