Leed Successfully Flow Tests Sorrento Salt Dome in Louisiana

Leed Petroleum has reported a successful flow testing of the onshore Louisiana Sorrento Dome United Lands "14-1" Well, which the Company plans to return to production.

The Sorrento Dome field is located in Ascension Parish, Louisiana, approximately 50 miles northwest of New Orleans. The field was discovered by Gulf Refining Company in 1929 and was primarily developed by Texaco during the 1950s. To date, the field has produced 750 BCF and 5,000 MBO. Leed acquired a 100 per cent. operated working interest in a portion of the Sorrento Dome field in April 2007 including the shut-in United Lands 13-1 and 14-1 wells and associated facilities .

The 14-1 well (Leed: net working interest 100%), was shut-in during 2006 following various attempts to isolate water production. Leed's previous plans involved drilling a sidetrack of the well, however, a water saturation log was run in the well during July 2009, which showed significantly higher hydrocarbon saturation in the vicinity of the perforations than previous logs run during 2004 and 2006. A flow test was subsequently conducted through the existing facility over four days and a stable but restricted flow rate of 1.3 mmcfd (217 boepd), 1785 bwpd, 644 ftp on a 30/64th to 32/64th choke was established for an extended 3 day period. Bottom hole pressure gauges confirmed stable flowing bottom hole pressures during the flow period.

Leed plans to convert the existing temporarily abandoned United Lands 11-1 well to a salt water disposal well and install a new gas sales meter on location prior to restoring production from the United Lands 14-1 well.

The work is planned over the coming months with production scheduled to commence early Q1 2010.

Howard Wilson, President and Chief Executive of Leed, commented, "The successful flow test of the 14-1 well at the Sorrento Dome Field is the first step after the Eugene Island drilling program towards an increased and diversified production base.

"The project will require minimal capital outlay and low operating expenses will be incurred once production is established. We expect to commence gas sales in time to take advantage of the historically higher winter natural gas prices. We are very pleased to be able to restore production from the 14-1 well, which has enabled the Company to accelerate production whilst removing capital costs from the project."

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