Of particular note, a new reservoir zone approximately 60 meters in measured thickness (33 meters true vertical thickness) of what is interpreted as highly porous and fractured volcanic tuffs, was encountered above the main volcanic reservoir section detailed above. Severe lost circulation with high mud gas readings and live oil at surface was encountered over this interval at 1,100, 1122.5, 1130 and 1,149 meters (MD) with corresponding mud losses of 14, 105, 77 and 85 bbls/hr. From a volumetric standpoint this is significant and marks the second time severely fractured, very porous volcanic tuffs have been encountered. The first occurrence was at POE-9 where a highly fractured 25-meter thick tuff exhibiting severe lost circulation was encountered above the main volcanic target, but never tested.
Testing is anticipated to be completed within the next 7 to 10 days.
NS6-D1 (60% WI & Operator):
The Aztec #7 rig is currently sidetracking to a subsurface location approximately 70 meters south west of the original target after prematurely crossing the main bounding fault of the southern fault compartment, prior to encountering the main volcanic reservoir. Sidetracking operations are anticipated to take approximately 7 to 10 days.
L44H-D1 (60% WI & Operator):
The Aztec #14 rig is currently rigging up on deviated appraisal location L44H-D1, located within the central fault compartment of the NSE oilfield with a subsurface target located approximately 700 meters north of the vertically drilled L44-H well. Drilling is anticipated to commence within the next 3 days and take approximately 14-20 additional days to completion.
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