Bridge and Paramax announced that the testing of previously announced exploration wells in Idaho has been completed. With the testing of the four wells that had been cased as potential gas wells, two separate development project areas have been identified.
The M.L Investments well, which tested at a rate of 4.5 million cubic feet per day with 54 barrels per day of 61.5 degrees API condensate and no water, has identified the Willow Project. Subsequent evaluation of down-hole pressure gauges indicates that the productive capability of the well is several times the rate tested on the small 3/8" choke. The gas is sweet and, after condensate separation, has a calorific value of 1,150 btu.
Recent successful testing of the Espino 1-2 and the State 1-17 wells has confirmed the second development, named the Hamilton Project. The Espino 1-2 tested gas at a rate of 0.5 million cubic feet per day and the State 1-17 tested gas at 1.4 million cubic feet of gas per day from shallow sands above 1,882 feet depth. These were natural flow rates and higher production rates are anticipated with future use of non-damaging mud and minor stimulation. The gas is sweet and dry with a calorific value of 1,050 btu.
The fourth well in the testing program, the Island Capitol 1-19, tested high water-cut and the well-bore is being saved for future sidetrack to a structurally higher subsurface location.
Development of the Willow Project area will involve both seismic and drilling. A seismic program has been defined and permitting is currently in progress. It is anticipated that the seismic program will be shot and interpreted prior to end of July.
A development drilling program is planned to commence at Hamilton in July based on the Espino and State well data along with the previously shot seismic. Hamilton and Willow development drilling will alternate in batches with a total of up to 10 wells anticipated in 2010. Potential tie in options for each of the prospect areas are being evaluated.
In addition to the development projects at Willow and Hamilton, the companies expect to continue with the exploration program on other prospective acreage. The companies have added to their acreage position and plan a second seismic program and subsequent exploration drilling in the fourth quarter of 2010.
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