Brookside Energy Ltd (ASX:BRK) has encountered oil shows along with elevated gas readings in the first of 10 targeted potential reservoirs during early drilling of Juanita Well in the Bradbury Area of Interest (AOI) in Oklahoma.
Juanita is a low-cost vertical well operated by Brookside’s US subsidiary Black Mesa, LLC and being drilled by Edge Services, Inc Rig 12 in the Bradbury AOI within the Arbuckle Uplift-Ardmore Basin.
Over-pressured zone
The company is encouraged by these early signs although the drilling encountered an over-pressured zone in the sandstones of the Springer Group at ~3,500 ft TVD.
This prompted a decision to temporarily suspend the well until a rig capable of operating more efficiently at these pressures can be mobilised.
The current rig is not suited for this pressure regime and has been demobilised, with several suitable replacement rigs already identified and being reviewed.
"A great start”
Managing director David Prentice said: “It is encouraging to see oil shows and elevated gas readings in the Juanita already and while it is very early days in terms of drilling and logging across the zones of interest it is a great start.
“The temporary suspension of operations is the prudent course of action in these circumstances and the team is getting out in front of this situation and has already located several options for a rig capable of completing the next phase of drilling and successfully reaching target depth.”
Suitable rigs identified
Several suitable rigs have been identified and are readily available with these rigs being reviewed by the Black Mesa team.
Operations will recommence as soon as possible, estimated to be early in the New Year.
The Juanita Well will be drilled as a vertical well to a true vertical depth (TVD) of ~6,450 feet.
Targeting 10 potential reservoirs
It is targeting 10 potential oil reservoirs, including zones from within the highly productive Simpson Group, all of which are proven producers in the area, with mean cumulative production from vertical wells in the Bradbury AOI of ~130 MBO per well, including a 744 MBO producer less than a mile east of the Juanita Well location.
“We are looking forward to bringing news of the recommencement of operations as soon as possible as well as updates from drilling of the Wolf Pack well in our SWISH AOI which is proceeding on schedule,” Prentice added.