Antrim Energy Says 16 Wells Drilled in Tierra del Fuego
Antrim and their partners in the Puesto Guardian, Medianera, and Capricorn concessions have completed the acquisition of 54 km2 of 3D seismic in the Capricorn concession, 330 km2 in the Puesto Guardian concession, and 83 km2 in the Medianera concession. Processing of this seismic data is underway and will be completed in the fourth quarter. The 3D seismic programs are a move to replicate the successful strategy that Antrim and partners applied in the Tierra del Fuego block in 2005-2006, and are expected to fuel drilling programs on the concessions in 2007-2008. Discussions are underway to secure drilling services for each of these concessions. Antrim's working interests in Medianera, Puesto Guardian and Capricorn are 70%, 40% and 50% respectively.
In Tierra del Fuego, 16 wells have been drilled in a program that started in October 2005. These include five oil-rich gas wells, three oil wells, six wells awaiting stimulation, one well waiting to be tested, and only one well dry and abandoned. The eight gas and oil wells have combined test rates of 66 mmscfd of wet gas, 800 barrels of oil per day and 1,000 barrels of condensate per day. The most recent well to be drilled, LF-1005, was a gas discovery in the Cretaceous Springhill Formation with approximately 7 meters of net pay and average porosity of 19%. The well was drilled to a total depth of 2,257m. LF-1005 will commence testing in approximately one month. Six more wells are planned before the drilling rig contract expires, estimated to be in December. Negotiations are underway which are expected to result in a new rig to resume drilling by March 2007. A fracture stimulation unit has recently arrived on the island and the required stimulation treatments are planned over the next few weeks. The majority of these fracture treatments will be on wells that, based on log and drilling data, are expected to result in oil production that can be brought on stream quickly.
Gas processing facility expansion at an estimated cost of $15 million is in progress. Until the expansion is completed, which is projected for August 2007, only a portion of the new Tierra del Fuego discoveries can be brought on production. Nevertheless, Tierra del Fuego gross production has increased from 10.1 mmscfd wet gas and 465 barrels of oil per day prior to the drilling program to the current 19.3 mmscfd wet gas and 944 barrels of oil per day. Expansion will raise the gas processing capacity to approximately 40 mmscfd. Negotiations are underway for liquids-rich gas sales prior to the start-up of the expanded processing facilities. Antrim's working interest in the Tierra del Fuego concession is 25.78%.
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