Zone 5 in LaPlaya Deep-1 has been perforated and flowed at a stabilised rate of 1.2 million cubic feet of gas with 16 barrels of oil and 45 barrels of water per day through a 12/64” choke.

Operations to tie the well into the pipeline grid and the installation of surface processing equipment will begin this week and it is expected that the sale of gas will commence within two to three weeks.

However the attempted fracture stimulate of zone 4 failed due either to formation damage caused by the fracture attempt or the flow characteristics of the reservoir or a combination of both.

“We have a commercial completion of zone 5 of LaPlaya Deep. This will be the company’s third producing field and the production from that will add to the company’s cash flow. We also believe that because of formation damage the true potential of zone 4 has not been determined and that the testing of that zone in another well may produce better results,” said managing director Sam Russotti.

“In addition there is up to 15 feet of gross potential gas reservoir in the shallow section of the well where the majority of the interest is held by BNP and Golden Gate Petroleum. That shallow reservoir provides the company with the opportunity of a future additional development.”

Homerun – 1 at Padre Island will begin testing of the deepest three zones next week although electric logs have already indicated the presence of hydrocarbons in three broad zones totalling a net 138 feet of potential reservoir.

Electric logs from Syd –A1 have indicated both oil and gas within several zones that total some 31 feet of net reservoir. Testing is anticipated to commence within two weeks.

“The next month promises to be very exciting with the testing of both Homerun and the company’s own Syd –A1 having the potential to deliver results that would significantly add to the financial strength of the company. Success in both tests would result in the company having five producing fields and deliver a healthy cash flow to apply to future growth,” said Russotti.