The well, part of the company's Project Margarita on the Texas Gulf Coast, has flowed at a rate up to 210 mscfd and is currently flowing at a stabilized rate of 175 mscfd, both flows were constrained at surface by the choke size while engineering data is obtained. Well flowing and bottom hole pressures are good and it is expected that the flow rate when in production can be increased from the current level.
Gas contracts and regulatory approvals for a gas sales line are currently being sought for the well.
Dos Dedos # 1 Well
The Dos Dedos well reached total depth on February 3, 2007, at approximately 9:30 p.m. WST. Wireline logging operations have been conducted and the interpretation of this data indicates a total gas pay of 3.5 meters over three zones. This is within the range of expected pay predictions pre drill. The well has been completed with production casing in preparation for a flow test.
Dos Dedos is the third well in the Margarita Project shallow drilling program, all of which have encountered oil and or gas and all have been completed for flow testing. Drilling operations will take a break while the rig is contracted to another operator, a further release will be made when drilling operations on the remaining 3 wells in the shallow program recommence.
Milagro #1 well
Well flow testing is now anticipated to commence during the evening of Wednesday (WST) March 7, 2007.
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