The news closely follows announcements that the BG Webb-1 well in the related Flour Bluff project had returned to production.
Victoria Petroleum, a partner in both Texan projects, told the Australian Stock Exchange that Texas Crude Energy Inc, the operator of both the Flour Bluff and EFB projects, had advised on Tuesday that the wire logging operations inclusive of fluid collection, pressure readings and taking sidewall cores on target pay sands had been successfully completed.
After evaluating the data to hand, TCEI is to set casing and complete the Frio Massive sands together over a 15.2 metre interval from 2164 metres measured depth. EFB E-10 has been drilled to 2205 metres.
Following casing operations a well service rig will move in for well completion and testing operations, which could run for another 30-60 days.
Victoria Petroleum managing director John Kopcheff said the company was “encouraged by the operator’s recommendation to run production casing and complete the well for gas production testing”.
The EFB gas field is under the shallow Laguna Madre lagoon. It has a 3P reserve of 23 billion cubic feet of recoverable gas with further upside potential of 44 BCG recoverable gas.
EFB E-10 is the second well in a two-well development and three-well work program on the EFB gas field.
Flour Bluff is an old South Texas giant gas field that has produced about one trillion cubic feet of gas with associated condensate since it was discovered in 1934. The partners in that project are working to develop two sets of known but virtually undeveloped deeper reservoirs between 2750 and 3600 metres.
Major reserve potential for Flour Bluff is about 104 BCF of recoverable gas.
Besides Victoria Petroleum, which holds a one-sixth stake in East Flour Bluff, two other Perth-based juniors Aurora Oil & Gas and Sun Resources also hold one-sixth stakes.
Private US interests, including the operator, hold the remaining half.
The three Australian companies each hold a one-eighth stake in Flour Bluff, with the private US interests including the operator holding the remaining 62.5%.
