The Rainosek-3 well is presently drilling a 12.5 inch hole at 1,475 feet using the Grey Wolf Drilling Company land rig 454. The Rainosek-3 well (FAR 20%) is a planned 8,750-foot test of nine potential Eocene Wilcox pay zones expected to take 16 days.
FAR chairman Michael Evans said the timing of the well and the fact the proposed location is less than 200 feet from an existing gas line should enable early production at the high energy prices normally associated with the North American winter.
Evans said using pricing parameters of US$20 per bbl and US$2.20 per mcf with escalation, independent engineering studies of the project (100%) returned a present worth discounted at 10 percent of US$14.9 million.
The upside to FAR is likely to be a good deal higher as the prices used in the study are far less than the current market prices of approximately US$29 per bbl for oil and US$4.20 per mcf for gas.
He said the historical success rate since FAR first started drilling in the US would be around 60 - 75 percent for their Texan and Louisiana combined. "All our USA programs are driven on 3D and sub surface well control close to existing production so we expect between 75 - 100 percent. That's why we drill there," he said.
The Rainosek Project is seen as offering low risk but high potential. The initial well, if successful, will be followed by the re-entry and stimulation of an existing Midcox producer.
