Butter Lake Well Flows Hydrocarbons

Entek advised that the Butter Lake 32-10 well (32-10) has flowed hydrocarbons during initial cleanup.

Butter Lake 32-10 (32-10) Update

  • The well has been flowed for initial cleanup, and is now shut in as the rig moves off location. Since being shut in, the well has shown further indications of influx, with increases in wellbore fluid level and well head pressures.
  • Further cleanup of the well is likely to be required before a stabilized flow can be determined. Testing and analysis will continue over at least the next two weeks.
  • Entek is cautiously optimistic with the results of the 32-10 well to date and is continuing its testing and analysis program.

Niobrara Oil Resource Play Update

The Butter Lake 32-10 well represents the fifth well in Entek's Niobrara Continuous Oil Play, all of which have encountered hydrocarbons. All five wells are being reviewed to optimize completions to maximize production potential.

Although the Niobrara Formation has been producing from vertical wells for decades it is commanding industry attention of large oil and gas companies as a result of significant recent production outcomes and is currently one of the most sought after and prospective oil resource plays.

Entek engaged the services of Dr Thomas Ahlbrandt to evaluate the prospectivity of its Niobrara Continuous Oil Play within its portfolio. The following are comments from his report.

  • Three continuous Upper Cretaceous oil resource plays (Niobrara, Mancos and Carlile (Basal Niobrara) exist on Entek acreage and are productive in the region.
  • The Niobrara is thick, 900-1,800 feet and has a higher detrital composition relative to the DJ Basin — good for enhancing brittleness (fracability). The shales are fractured in response to their tectonic setting related to regional shear zones and extension.
  • The recent U. S. Geological Survey (USGS) assessment of the recoverable oil from the Niobrara Continuous Oil Play, where Entek is focused, is about 2.5 times that of the Niobrara Continuous Oil Play in the DJ Basin where there is the current industry focus.
  • Vertical testing and additional rock parameters are needed prior to attempting a horizontal well which will most likely be in the Niobrara. Entek now has five key wells across its acreage to undertake this work.
  • The resource potential of the Niobrara Continuous Oil Play has been assessed by the USGS to have more potential than the Niobrara oil resource play in the DJ Basin.

Entek is conducting a prospective resource study across its Niobrara Continuous Oil Play acreage utilizing the five key wells described above and adjacent analogue wells from Anadarko's Sierra Madre Field which has been in production since the early 1990's.