EXPLORATION

US seismic shoot and two new wells for Amadeus

AMADEUS Energy has reached an agreement with US-based Union Gas Operating Company to participate in a 3D seismic shoot of about 24,000 acres (9,700ha) neighbouring the Raccoon Bend field, Texas. In addition, the company expects to soon spud two new exploration wells in its US acreage.

US seismic shoot and two new wells for Amadeus

Drilling is expected to start today at the Schwing A-1 well in Bayou Choctaw, Iberville Parish, Louisiana. As of yesterday, the drilling rig was moving onto location and was rigging up, the company said. Amadeus holds a 52% interest in Schwing A-1, which has a planned total depth of 11,600 feet (3536m).

In Texas, the Pennington-2 well in Grapeland field, Houston County, is due to spud mid this month, after end of year repairs are completed on the rig, the company said. Amadeus holds a 58.5% interest in this well, which has a planned total depth of 6000 feet (1828m).

Also in Texas, the Scheinemann South-1 gas development well at the Halletsville project in Lavaca County has been successfully recompleted, with production increasing to a current rate of 2.9 million cubic feet per day and 120 barrels of oil per day. Amadeus holds a 25% interest in this well.

Meanwhile, Amadeus says the 3D seismic shoot will be aided by the existing Western portion of the Raccoon Bend 3D seismic data comprising 9,800 acres, for a total of 33,800 acres.

Executive director, Caroline Bentley, said the shoot would primarily target the Deep Wilcox at depths of up to 14,000 feet (4,300m).

“Exploiting the Deep Wilcox is an area that Union has an extremely successful track record using 3-D seismic in South Texas over the past few years,” Bentley said.

“The deal provides Amadeus access to potential deeper zones in the Racoon Bend field and adjacent areas, which are currently not being exploited.”

Bentley added that the company would announce the costs and timing of the program at a later date.

“It is anticipated the 3D seismic shoot will commence during Spring 2006 (Australian Autumn), interpreted by Fall (Spring) and the first deep test well drilled in early 2007,” she said.

Under the agreement, Union will be the Deep Wilcox operator and TNT Engineering Inc will be the operator for the shallow rights, above the Sparta horizons.

Union will fund 50% of the seismic shoot to farm-in 40% of the shallow rights in the areas adjacent to the Raccoon Bend field. Amadeus and the existing Racoon Bend partners will fund the remaining 50% for the outstanding 60% of the shallow rights.

Potential reserves per prospect for the Deep Wilcox are 15-20 billion cubic feet of gas and 3-10 million barrels of oil, Bentley said.

She added that the shallow zones had the potential to contain multiple pays from the same horizons already successfully exploited in the Raccoon Bend Field.

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