Entek Hits Gas Column in GOM
Entek's GA A133 well in the Gulf of Mexico is now being temporarily suspended, awaiting tie in to production, after intersecting around 200 feet of net gas pay during drilling (equivalent to the most-likely pre-drill interpretation). The well, interpreted from logs and offset production in the adjacent block (operated by Peregrine), is expected to have an Initial Production (IP) rate in the range of 10 to 20 MMCFD. Post discovery reserves are presently being calculated and will be independently certified prior to production tie-in. Based on the discovered gas column and high quality net reservoir intersected, it is expected that reserves will be very close to predrill predictions.
GA A133 Summary
Entek was originally awarded the block at 100% interest. The company subsequently farmed out 50% Working Interest (WI) to Peregrine Oil and Gas II (Peregrine) who operate the adjacent platform through which this GA A133 will be produced and, as intended, Peregrine is now also operator of the block. The Company has also subsequently further farmed down 12% WI to Challenger Minerals Inc.
A Processing and Handling Agreement with the adjacent GA A155 Block and platform owners (operated by Peregrine) has also been executed. This allows Entek to process production from GA A133 through the adjacent GA A155 platform.
The hydrocarbon resource potential of GA A133 ranges from 2 BCF of 3P reserves (certified by Ryder Scott) up to 18 BCF of prospective resource. This initial well in GA A133 was targeting a prospect with up to 12 BCF of prospective resource. Post discovery reserves are being recalculated and will be independently certified prior to production tie-in. The proven reserves and associated prospective resource on the Block will be targeted for tie-in later.
Based upon the results of this well, a plan of development is being prepared, taking into consideration weather windows and the anticipated increase in gas price towards the end of 2011. First production could be as early as end second quarter 2011.
CEO and Managing Director Trent Spry stated, "The GA A133 result is a great way to start 2011. First production could be as early as end second quarter 2011. GA A133 is expected to deliver a strong revenue stream to the Company as gas prices are anticipated to rise. The 2011 year will see some exciting developments in Entek's Gulf of Mexico portfolio and further work by the successful Entek / Peregrine partnership, including the VR 342 Oil Project."
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