Entek Energy announced that well A-11 on North Padre Block 975, in which it is earning a 25% Working Interest, has been re-entered prior to drilling out a sidetrack to the reservoir objective.
The A-11 sidetrack (A-11 ST01) well is:
Conservative projected earnings from the well indicate payback of Entek's estimated $1,250,000 completed well cost share within 12 months, at which time there will still be 70% remaining of the initial 4 BCF reserve with potentially a further 2 BCF of upside reserve.
This well is the first of two wells Entek is participating in the Gulf of Mexico in the very near term. The second, Galveston Block A133, is expected to spud around July 1st 2010, utilizing the same drilling rig and with the same Operator, Peregrine Oil & Gas II, LLC. This program marks the commencement of the Company's action plan and capacity to drill and develop its exciting portfolio of ready to drill prospects that has been assembled over the recent past in the offshore Gulf of Mexico.
The reservoir objective at PN 975 is being reached via the re-entry and sidetrack drilling of the existing A-11 well. This offers considerable cost savings to the alternative of drilling a new well.
Entek is farming into the PN 975 A-11 ST01 well to earn a 25% Working Interest. Under the terms of the Participation Agreement that has been executed between Peregrine Oil & Gas II, LLC, as Lessor of the Block and Entek, Entek's production from the A-11 ST01 well can be processed through the existing North Padre Area, East Addition, Block 975 A Platform at pre-agreed terms.
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