Crown Point Ventures Completes Dual Zone Oil Well in Argentina
Crown Point Ventures has successfully completed the EVx-19 well as a dual zone oil well. This well was drilled as part of a three well program in the El Valle field in the San Jorge Basin in Argentina. All three wells have been cased as potential oil wells and the EVx-19 is the first to be completed.
In the EVx-19 well, the Company has completed two zones; the first is a five meter thick sandstone in the Caleta Olivia formation; upon completion this zone tested light oil. The second is a four meter zone in the Canadon Seco. The Canadon Seco zone was fracture stimulated during swabbing and the subsequent production test freely flowed clean oil. The well flowed until it was shut down to run pump and rods. The well will be placed on regular production in the next few days.
"We are pleased with the completion results of the EVx-19 well," said Murray D. McCartney, President and CEO. "The completion of the EVx-19 well is an excellent indicator of what we can hope to see during the completion of the remaining two wells. It should be noted that all of the wells encountered numerous potential pay zones and the EVx-19 well has several other zones which have not yet been completed and evaluated."
Once completion operations have concluded on the EVx-19 well then completion operations will move to well EVx-21, the second of the three well program. Among the numerous potential hydro-carbon bearing zones of interest in this well are two significant zones. The first zone encountered a four meter thick sandstone in the Caleta Olivia Member of the Canadon Seco Formation. Analysis of the well logs and drilling samples indicate that it is prospective of containing light/medium oil. The second zone of interest is a three meter thick sandstone in the Mina el Carmen formation. Logs and drilling samples indicate that this zone is prospective of containing a medium grade of oil.
The drilling and subsequent completion of these wells will complete the earning requirements under Crown Point's farmin agreement. These wells were drilled pursuant to a farmin agreement on 15,814 acres on the southern flank of the San Jorge basin. Drilling in the El Valle field commenced during the early 1960's with approximately 30 producing wells being drilled in the field. During their productive lives these wells have an average cumulative production of 250,000 bbls. of crude oil from the Caleta Olivia and 125,000 bbls from Canadon Seco formations.
Pursuant to Crown Points' farmin agreement, the Company undertook a 90 Sq. Km. 3-D seismic program and committed to the drilling of three wells. By drilling, completing and equipping or abandoning the three earning wells, Crown Point will earn a 70% interest in the production from the earning wells prior to payout and a 50% interest thereafter. The Company will also earn a 50% interest in the balance of the field (excluding the current producing wells). Crown Point will have the right under joint venture agreements (50% interest in incremental production) to re-enter, re-complete or work over any existing well on the property.
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