Aminex has announced the results of the first phase in a testing program at the Sunny Ernst-2 well ("SE-2"), Alta Loma, Galveston County, Texas.
The first phase of testing program at SE-2 has materially exceeded expectations. The well is expected to transform Aminex's existing US production and to make a material and immediate contribution to cashflow.
SE-2 encountered multiple hydrocarbon-bearing formations in four separate zones, all of which have been logged as potential reservoirs:
- Zone 1 the Weiting Sand 5 feet of reservoir
- Zone 2 the "S Sand" 60 feet of reservoir
- Zone 3 the "Upper Andrau" 30 feet of reservoir
- Zone 4 the "Massive Sand" 4 feet of reservoir
Progress on the testing program:
- Zone 4, the Massive Sand, tested gas flow rates in excess of 1.7 million standard cubic feet per day (mmscfd) and approximately 100 barrels of condensate per day.
- Zone 3, the Upper Andrau, tested gas flow rates of 6.1 mmscfd and 342 barrels of condensate per day.
- Zone 2, the "S" Sand, is the largest formation and will be perforated and tested in the near future.
- Zone 1, the Weiting Sand, will not be tested at this time and will remain as "behind-pipe" reserves for future production
Gas is now being delivered to market from the Upper Andrau formation on an initially restricted choke at the rate of 4mmscfd. There is a ready market for gas in the area. Condensate sells at close to WTI oil prices.
The operator of the well is Coronado Energy E&P, a wholly-owned subsidiary of El Paso Corporation, and participants in SE-2 well are:
- Aminex 37.5%
- El Paso Corporation 25.0%
- Activa Resources 14.5%
- McFuel Corporation 12.5%
- Ventum Energy 5.0%
- Other small interests 5.5%
Commenting on the announcement Aminex Chairman Brian Hall said, "The first phase test results achieved from SE-2 represent by far the most successful drilling result we have achieved in the USA to date. Results from the potentially much larger "S" Sand will be reported when available. Given its favourable royalty rate and low operating costs, coupled with substantial behind pipe reserves to support future production, this well should transform our US producing operation."