Maxim to Participate in High Island Well
Maxim Resources has entered into an Agreement with Emperor World Trading LLC, an arms-length company located in the United Arab Emirates, to acquire an undivided 20% working interest and a 10% net revenue interest in and to the 115 B-1 well and the High Island Block oil and gas leases. The purchase price for the acquisition is US $2,000,000 of which: US $371,000 has been paid; US $500,000 is due on or before April 23, 2007 and US $1,129,000 is due on or before May 15, 2007. Finder's fees may be paid on the acquisition in accordance with the policies of the TSX Venture Exchange.
Maxim will be participating in a relatively low-risk offshore Gulf of Mexico re-drilling sidetrack of the High Island 115 B-1 well to develop remaining proven and probable reserves in the prolific Cris R reservoir. This well will be operated by Republic Petroleum, LLC. The sidetrack will be a low angle (less than 8 degree) hole with less than 2000 feet of open hole drilled to a total depth of about 16,900 feet. Drilling of the 115 B-1 well is expected to commence in the middle of May at an estimated cost of US $7,000,000.
The High Island B-1 well produced 8.5 Bcf from the Cris R sand at an average rate of 22 million cubic feet of gas per day from October 2003 to December 2004 when it had an abrupt mechanical failure of the production casing.
The High Island B-1 well is a single caisson well in 44 feet of water in western Gulf of Mexico. The platform, facilities, and associated gas pipeline connections are less than four years old and remain intact. This well was previously operated by El Paso Corporation and drilled to a total depth of 19,800 feet to test Frio targets. It was originally completed in the Miocene age Cris R sand, which is again the proposed target reservoir, at a measured depth of 16,842. A large four-way dipping structure exists under a major down to the southeast listric fault that is at 15,400 feet. The original well logged more than 180 feet (tvd) of gross sand with 124 feet (tvd) of gross gas column. This 250 acre reservoir has porosity ranging from 18% to 22% and water saturation ranging from 25% to 35%. The original formation pressure was confirmed to be 15,665 psi.
A successful completion of this well will earn rights to nearly 5700 acres over the entire block. High Island 116 announced a major discovery which is clearly separate from the proposed target reservoir. It is speculated that additional prospectivity exists within the acreage earned through this proposed development.
- Maxim to Purchase Private Trinidad Producer's Shares (Jun 09)
- Maxim Receives Approval On 47 Well Drill Program in Trinidad (Mar 07)
- Gas Pay Found at High Island Prospect (Aug 21)