Candax: Chaal-1 Completion Underway

Candax Energy reports that the completion for its Chaal-1 well onshore Tunisia is underway prior to further evaluation work.

Two tests have been conducted. Although modest levels of hydrocarbons were flowed, both tests have been significantly affected by damage to the exposed well bore due to the high mud weights used to control the well during drilling--necessitating the inclusion of very high barites content. Mud weights up to 17 lb per gallon were still in the well when the tests were being conducted, and due to limitations with local equipment it proved impossible to displace the mud prior to testing.

Given the equipment difficulties, it has been decided to run the production completion before continuing further operations. This will allow rig-less intervention with a coiled-tubing unit to be implemented and further testing and evaluation involving displacement of the mud and acidization undertaken once the rig has been removed.

An analysis of the produced gas from DST#2 confirms that there is high quality gas in Chaal, with over 99% hydrocarbon content, little evidence of CO2, N2 at 0.82% and H2S of 0.04%. Due to the high mud weights, the test result analysis for the levels of higher end hydrocarbons such as condensate are not considered reliable, although it is estimated from this initial sample that a condensate content in the order of 50 bbl/MMcf is likely.

"Although we have successfully proved that the Chaal structure contains significant gas and condensate reserves potential and have confirmed that the quality of the gas is excellent, we have not yet achieved our third objective--namely a test flow at economic rates," said Michael Wood, Candax's president and CEO. "Chaal is a large structure of up to 300 square kilometers, and at Chaal-1 we have encountered a total gas-bearing section of 450 meters, with the net reservoir estimated at 90 meters."

Wood added that fractured carbonate reservoirs such as at Chaal are technically challenging. "In this case it was not helpful to be working in a region where procurement of the right equipment to properly test the well could not be mobilized when needed," he said.

Wood noted that Candax and its joint venture partners are fully aligned in their views that Chaal has huge potential and the next phase following the completion of testing will be to develop the program for further appraisal and subsequent development.

"The partners will be investigating both multilateral completions and under-balanced drilling as ways of optimizing both well productivity and maximizing the reservoir potential," he explained. "The technical review of these options is currently underway and we will confirm the program and timing as soon as the testing is completed and the forward program is finalized."