The first well, SA-1, confirmed the oil discovery in the KT1 and KT2 carbonate reservoirs. "We have opened a second 66 foot interval and the well flowed at an initial rate of 1,100 bopd on an 11mm choke," noted Bruce Falkenstein, vice president exploration & geology. "Pressure data indicates significant formation damage which could be remedied by an effective acid treatment. We plan to open a third interval of about 60 feet this weekend, after which we will perform the clean up and acid treatment which is designed to remedy formation damage. All three combined zones will be placed on extended production by mid-August. We should have a better picture of the well's potential once this work is completed."
Commenting on this recent news, Lorrie Olivier, chairman and CEO of TMXN said, "The plan to drill two wells at a time, and subsequent wells back to back, using our recent $30 million financing, should achieve our goal of producing sufficient cash flow from the Field to fund our development operations and debt service on the earliest possible timeframe."
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