Orchard today said they began the program last Thursday, November 9, with the spudding of the SB 146-7 well.
SB 146-7 is being drilled by Nabors Industries using the new Coil Tubing Rig
(CTR) technology.
Orchard said because it is the first well using CTR technology, it is being drilled as a water disposal well to a target depth of 1400 feet (426.7m), to reduce overall production costs from the site.
The next well to be drilled at South Belridge will target hydrocarbons in the Diatomite and Etchegoin sand formations to a target depth of about 5000ft.
Participants in the project are operator Orchard and Maxim TEP, both with a 50% interest in the new wells.
On Friday, Orchard announced that it was recommending its shareholders accept Crosby Capital Partners' revised takeover offer of 81c per share.
Eskdale Petroleum, a wholly-owned subsidiary of Crosby Capital, has agreed to make the conditional cash offer, valuing Orchard at around $175 million on a fully diluted basis.
