Reef Resources Encounters Oil Pay at Ontario Well
Reef Resources reported that petrophysical analysis has been finalized on its Ausable #5 well. Log analysis indicates 72 meters net pay of oil, natural gas liquids (NGL's) and natural gas in the Guelph and A2 formations in Ontario, Canada.
Log analysis in the Guelph indicates net oil and gas liquids pay zone is 57 meters with porosity averaging 9.7%. Evidence of hydrocarbons was evident on core and logs throughout the Guelph formation.
Additionally, the shallower A2 formation was identified as a potential gas producer with net pay of 15 meters and 7% porosity.
The Company will now undertake a work program in order to complete the hole and flow test the well, with the intent of bringing the Ausable #5 well on production.
A comprehensive core analysis will be conducted in the near future to determine cap rock integrity for future gas storage, permeability of the producing zones and provide useful information for the upcoming completion program.
Arnie Hansen, President, stated, "The Ausable #5 well has exceeded our expectations. The log and core results confirm the notion the Ausable reef is an underutilized and undervalued asset. Findings on the Ausable #5 well confirm the Company logic to accelerate the Enhanced Oil Recovery (EOR) and Natural Gas Liquids program."
Reef will be announcing test results after completion and next development steps in the EOR, NGL program.
The Ausable reef is currently on production and is generating revenue from the initial Enhanced Oil Recovery Natural Gas Liquids Recycling program which commenced in 4th quarter 2010.
Solo Executive Director, Neil Ritson, commented, "These results, with over 70 metres of net hydrocarbon pay, are extremely encouraging and the Ausable #5 well has a high probability of being productive. This result contributes significantly to the field development plan and to the knowledge necessary to successfully optimize the EOR scheme. The well, financed by Solo's participating loan, adds further encouragement that the EOR scheme will be commercially successful."