Archer has consented to participate in its first test well within the highly prospective Radway Prospect in Alberta, Canada, approximately 25 miles Northeast of Edmonton, and approx 4 miles from the historic Redwater Field. Archer has been advised by the operator, South Bay Resources, LLC, that the well is expected to spud in mid to late October of this year.
Colin Bowkett stated, "The Radway Prospect is a project Archer is undertaking under its business strategy of combining lower cost, lower risk primary targets with higher reward secondary targets within a single wellbore. The primary target supplies desirable economics while the secondary target, if productive, would prove to be a significant new discovery for the Company."
The well will test the Glauconitic Sand at a depth of approx 1,200 meters, part of a shallower Cretaceous group upper section, and the deep Winnepegosis carbonate at a depth of approx 1,750 meters, part of a seismically identified reef development found in the area.
The Primary Target: The Natural Gas producing upper Cretaceous group is well developed in the surrounding area with over 200 completed wells within 30 miles of the Prospect. South Bay Resources (The Operator) has successfully tested its proprietary geoscience technology for identifying productive Cretaceous in 5 wells in the immediate area.
The operator reports that typical wells in this formation have had Initial Production rates as high as 1 Million cbft per day (up to 2 Billion cbft Estimated Ultimate Recovery) and strong economics with an expected payout of less than a year at current price levels.
The Secondary Target: The deeper Oil Prospective Winnipegosis carbonate reef feature is similar in structural orientation and interpretation to the prolific Redwater field approx 4 miles away. The Redwater field has over 200 completions and EUR reserves of over 1.3 Billion bbls of oil.
South Bay's unique geoscience technology has identified a reef structure with orientation similar to the Redwater field, and if productive, the reef holds tremendous upside with potential reserves in the tens of millions of barrels and full development could be as many as 30+ wells based on 40 acre spacing.
South Bay acquired proprietary 3D seismic data from EnCana covering the acreage that was reprocessed to be AVO (Amplitude Versus Offset) compliant allowing comparisons with other producing sands in the area. Further synthetic analysis have been made to identify sands and LMR (Lambda-Mu-Rho) analysis was used to show separation between gas and water wet sands and Spectral Decomposition was used to both to identify the sands and to predict porosities in them. The thorough analysis of the data gives support to gas in the Cretaceous objective and gives support that the underlying reef is capable of containing producible liquid hydrocarbons.
Archer is a 35% working interest owner in the well which is part of a 3,200 acre lease holding.
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