MGM Energy Reports North Ellice Well Results

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MGM Energy has announced the results of its North Ellice J-17 well drilled in the western Mackenzie Delta.

The well at North Ellice J-17 encountered poor quality reservoir sections within the Taglu and no hydrocarbons were present. The drilling rig will now move to the third and final well in this year's drilling program, Ellice A-25. Ellice A-25 will test a prospect on the Ellice Island anticline.

MGM Energy also announced the results of the second test on the previously announced Ellice J-27 discovery. This zone has a net pay of 9 meters with an average porosity of 22% and an average water saturation of 33% using a 10% porosity cutoff. The zone tested is located in the Taglu formation from 1369 to 1373 meters (measured depth). The zone flowed at a maximum rate of 632 e3m3/d (22.4 mmcf/d) through a 44.5 mm (1.75 inches) choke, a flowing tubing pressure of 8,215 kPa and a calculated drawdown of 16% and a skin of 21. As with the first test of the Ellice J-27 well, the flow rates were restricted. The calculated AOF of the zone with sand face skin only is 2,275 e3m3/day (81 mmcf/d).

MGM Energy also announced further information on the first test of the Ellice J-27 discovery. As previously announced, the zone flowed at a maximum rate of 1,083 e3m3/d (38.2 mmcf/d) through a 38.1 mm (1.5 inches) choke. The test had a calculated drawdown of 7.5% and a skin of 52, with a calculated AOF with sand face skin only of 314 mmcf/d (8,860 e3m3/d).

"While we are disappointed that our second well of the year, J-17, did not encounter natural gas, we continue to be very pleased with the results from the Ellice J-27 well, which continues to exceed our original expectations," said Henry Sykes, President of MGM Energy. "We now look forward to spudding our third and last well of this winter's drilling season, expected to occur by the end of February."

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