This decision follows a disappointing result last month, when a fracture stimulation program failed to recover gas from the primary Hosston Formation.
In a statement today, Adelphi Energy said further detailed analysis of wireline logs and gas shows indicate a 92-foot gas pay zone in the secondary target comprised three zones of porosity, which would be flow-tested separately.
Operator Texas Crude Energy is now undertaking engineering and reservoir studies to determine the best way of completing the zones for testing.
“Whatever method is chosen it is expected that fracture stimulation will be part of the procedure as is typical in such carbonates,” Adelphi said.
“The technical assessment, test design, permitting and securing of services is expected to take approximately two to three months.”
As a result of the analysis, the operator has extended the JV’s land acquisition program, increasing the area of mutual interest to about 19,500 acres.
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%).
