Adelaide, Jan 18, 2007 AEST (ABN Newswire) - Successful test results and gas flow from the Baxter Shale have been recorded by the operator, Samson Oil & Gas (SSN), following the frac program undertaken in the Green Canyon 29-2 well.
Fall River is earning a 15% working interest in the Green Canyon leases which will be completed following its contribution of 25% of the cost of the next Baxter well in the Green Canyon area.
The operator's program involved the re-entry of an existing well which was cased through the Baxter Shale, perforating selected intervals and subjecting them to fracture stimulation.
The well tested a gross interval of 305 ft out of a total 3400 ft Baxter Shale interval in the well. As such, it is a limited test designed to demonstrate the potential for commercial production from the Baxter Shale in the Green Canyon area.
The operator is paying 100% of the cost of this test well, which although within Fall Rivers Greens Canyons lease interest, is not envisaged in the farmin agreement.
The operator has commented as follows on the results of the well:
"Initial flow rates through the casing are estimated at 100 mcf of gas per day plus 48 barrels/ of load water per day through a 1 inch choke".... "It is expected that flow rates will increase on the well as the load water is recovered, although it is still too early to estimate the flow rates"...
"Initial results are encouraging and indicate favourable comparisons to Questar's Baxter Shale development play in the Vermillion area located 50 miles to the southeast ...."
"Questar Corporation, Kodiak Oil & Gas and Warren Resources ...."have announced significant capital expenditure plans for the Baxter Shale in Vermillion area and the difficulty up until this fracture stimulation was executed, was to be able to?demonstrate that the Baxter Shale in the in the Greens Canyon area could flow gas, in similar quantities to that observed in the Vermillion area."
Fall River views this test well result as most significant and an encouraging indication and confirmation of the presence of gas in the Baxter Shale within its lease hold interests.
Fall River looks forward to the drilling of its second earning well in the Green Canyon area.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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