Business
Drilling Update
Drilling Update.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \n\n\n\n6 July 2009\n\nAIM: XTR\n\n XTRACT ENERGY PLC\n (\"Xtract\" or the \"Company\")\n\n DRILLING UPDATE - Extrem Energy\n\nFurther to the announcement made on 1 July 2009, Xtract Energy Plc\n(\"Xtract\") is pleased to provide the following update on the progress\nof the production test being carried out at Sarikiz-2 by its Turkish\njoint venture Extrem Energy A.S. (\"Extrem Energy\").\n\nFollowing the test of the interval at 1728-1733m which was found to\nproduce associated carbon dioxide, further technical interpretation\nwas carried out. This revealed the existence of a minor fault which\nwas causing carbon dioxide from deep levels to penetrate the deeper\noil reservoirs. The fault did not appear to extend further upwards.\nThe new interpretation has been validated by the test of the interval\nbetween 1710-1715m which was completed on 6 July 2009. After recovery\nof the drilling fluids, the production test flowed oil without\nassociated carbon dioxide. Initial indications are that a pumped oil\nflow rate of approximately 180bbl/day could be achieved from that\ninterval alone.\n\nWith the benefit of the new interpretation, the number of intervals\nstill to test has been increased to eight, representing a further\n57.5m of reservoir thickness compared with 6.5m of thickness in the\ninterval just tested. The remaining sandstone intervals lie in a\nstructure between the depth range 1483m to 1697m.\n\nLog indications are favourable for the remaining intervals but the\nability to produce from them will remain unknown until they are\ntested. At this time, it is reasonable to expect that the total\nproduction flow rate from the well will meet or exceed the pre-drill\nestimate of 500bbl/day.\n\nFurther progress updates will be provided as appropriate.\n\nAll operations are controlled and operated by Merty Energy, Xtract's\njoint venture partner in Extrem Energy.\n\nXtract holds 27% of Extrem Energy and has the option of increasing\nits shareholding to 34% by contributing a further investment of\nUS$1.75m before 5 August 2009.\n\nThe above information has been reviewed and approved by Ongun\nYoldemir, Managing Director of Extrem Energy, who has a masters\ndegree in geological engineering and worked as an explorationist in\nthe oil and gas sector in the Middle East, Kazakhstan, Azerbaijan,\nand North Sea, has over 28 years' experi...