11 October 2018
- The Weiss-Adler et al No.1 well has been deemed non-commercial, following a log evaluation, and is being plugged and abandoned
- Final costs are expected to be materially lower than original estimates (US$7.5m vs. US$10.5m, MEL: 10%)
- The well has been drilled to a total depth of 17,766 feet MD and tested all objectives
Metgasco Ltd (ASX:MEL) (Metgasco or the Company) has been advised by Byron Energy Limited (ASX:BYE), of the above update on drilling operations at the Bivouac Peak East prospect in Louisiana USA.
Petrophysical evaluation of the porosity and sonic logs indicates the first objective to be a water bearing sand and the second objective a set of thinner, tight, gas bearing sands and shales with less than 5 net feet of conventionally logged hydrocarbons. The log data has been reviewed by all partners in the project. Plugging and abandonment operations will continue over the coming several days.
Philip Amery, Chairman of Metgasco, commented: “We are obviously disappointed with the lack of a commercial outcome at Bivouac Peak but do commend the operator’s management of the process and the efficiency of drilling operations. The only silver lining is that costs are expected to come in materially under budget. Accordingly, Metgasco’s financial outlay, fully budgeted and met in accordance with normal industry call practice, will be proportionately reduced and was in any case not substantial in the context of our overall activities and resources. The outcome at Bivouac Peak does not reduce our confidence in the upcoming South Marsh Island 74 salt dome project nor in Byron as a partner.”
“The Board looks forward to providing shareholders with further business updates in the coming weeks.”
Metgasco holds a 10% Working Interest and a 7.5% Net Revenue Interest in the Bivouac Peak project, within which the WA#1 well is testing the East Prospect.
Further details regarding the Weiss-Adler et al #1 well and the Bivouac Peak project are provided in Metgasco’s ASX released of the 27 August “Bivouac Peak 1st Well Drilling Operations Commence”.
Philip Amery, Chairman
Phone: +61 02 9923 9100