Aminex Encouraged by Shoats Creek Test Results
Aminex announced the test results of its Olympia Minerals 10-1 well ("OM10-1") at Shoats Creek, Louisiana.
Five zones identified by electric logs in the Upper Wilcox formation have been individually fracture-treated and flow-tested. Three of the five zones tested have now been placed on production and are delivering both oil and gas into pre-prepared production facilities and nearby pipelines. Average production is approximately 500 barrels of oil equivalent per day ('BOED') of which 70% is oil and 30% is gas.
The oil is a light crude, graded as 45 degrees API. Crude oil produced at Shoats Creek customarily sells at a small premium to the West Texas Intermediate ('WTI') marker price due to a combination of its high API grade and proximity to refineries.
Test production will continue for up to 60 days, at the end of which a decision will be made whether to continue producing only the three zones, leaving the remaining two zones behind pipe for future production, or whether to produce from one or two more zones at this time. The decision will be dependent on reservoir management considerations and experience gained during the initial test production phase.
Two further step-out wells are proposed for drilling on the same Upper Wilcox prospect during 2011.
Aminex USA, Inc., a wholly-owned subsidiary of the Company, owns a 50% working interest in the OM10-1 well.
Aminex chairman Brian Hall said, "We are very pleased with this result which represents a step change in our US operations and a successful result for the first exploration well we have drilled in the Upper Wilcox sands at Shoats Creek. With several other drillable prospects defined by 3D seismic in both Upper and Lower Wilcox sands, together with drillable prospects in the overlying Cockfield and Frio sands, Shoats Creek should now begin to make a material difference to the Company's development and production activity."
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