Business
Operational Update - DT9
Operational Update - DT9.
About this update from Petro Matad Limited
[{"type":"text","content":"\n \nRNS Number : 1971N Petro Matad Limited 30 August 2011 \n \n\n \n \nPetro Matad Limited (\"Petro Matad\" or the \"Company\")\nOperational Update - DT-9 testing\n \nPetro Matad provides an update on its operations at its Davsan Tolgoi Project, part of the Company's Production Sharing Contract (PSC) on Block XX in eastern Mongolia. \n \nThe testing programme on the Company's DT-9 well has been completed, with only water being produced from the most promising interval of the well in a valid test of reservoir fluids. The water produced is approximately five times fresher than that normally observed in the Tsagaantsav Formation, and it is believed that this phenomenon led to the incorrect estimation of net pay from the pre-test wireline logs which were announced by the Company on 22 August. \n \nThe DT-9 well reached its total depth of 1,766m on 16 August. The well encountered live oil shows at the top of the Lower Tsagaantsav and wireline logs identified a principal calculated pay zone between 1,639 and 1,651m depth that was accompanied by oil stain in samples and slightly elevated gas readings.\n \nAt that time, high apparent hydrocarbon saturations were calculated from the DT-9 wireline logs using a reservoir water salinity of 8,550 ppm NaCl equivalent. This salinity is consistent with measured salinity of the Tsagaantsav waters that were recovered from initial testing of DT-1. That benchmark is also within the 4,700 - 14,000 ppm range of wireline log salinities for the Davsan Tolgoi area, as calculated in-house and corroborated by two independent petrophysical consultants. Water salinities reported in 2005 by SOCO International from Block XIX Tsagaantsav reservoirs are also within that range. The actual formation waters recovered from DT-9 were approximately 1,700 ppm NaCl equivalent. This unprecedented fresh water occurrence in the local Tsagaantsav reservoir is currently considered to be the likely cause of the error in the original estimate of net pay from the pre-test wireline logs. \n \nUnlike DT-1 water recoveries, as detailed in a contemporaneous News Release, the DT-9 waters represent a valid test of formation waters that were recovered at a rate of 200 barrels per day from a 14 hour swab test across from a zone of good bond...