With a planned total depth of 21,000 feet (6400m), the wildcat will target several geologically independent structures in an area where nearby fields are producing from different horizons.
Aurora executive chairman Jon Steward said the results gained from drilling through the prospective shallow zones would be of considerable interest, given the company’s activity in adjacent areas.
“We are very pleased to get drilling underway at Sugarloaf and I know our shareholders will follow this well with great interest,” he said.
“Clearly, patience will be required given the planned drilling time for the well but the potential rewards make that more than worthwhile.”
Primarily, the well will target a large four-way dip closed growth fault structure developed in the early Cretaceous aged Hosston Formation, which has the potential to contain about 800 billion cubic feet (Bcf) of gas, with upside potential of several trillion cubic feet.
Seismic interpretation suggests the top of the Hosston will be intersected at a depth of 17,000ft. The potential also exists for several different sandstones to be developed over a gross 4000ft thickness.
The primary Hosston target is expected to be reached in early to mid-October, while total depth is due early the following month. If hydrocarbons are intersected in the Hosston Formation, they will be cased off and production tested using a smaller completion rig.
Before results are known about the commerciality of the Hosston, the well is expected to intersect the shallower secondary targets in Cretaceous-aged carbonate formations at depths ranging from 12,000-14,000ft. These formations, which have up to 100Bcf of reserves potential, are productive in adjacent areas.
The first secondary target is expected to be encountered in about four weeks’ time.
Due to the proposed total depth of the well, these shallower formations will be evaluated by logs and cased off, regardless whether hydrocarbons are present or not.
If potentially commercial hydrocarbons are interpreted, these will be production tested with a smaller rig after the deep drilling rig is released.
Definitive results from the shallow targets will therefore only be obtained once a testing program is completed, according to Aurora.
Sugarloaf-1 partners are Texas Crude Energy (operator with a 41.5% stake), Aurora (20%), Adelphi Energy (20%), Eureka Energy (12.5%) and Empyrean Energy (6%).
