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The Perth-based company yesterday said the Welder Ranch A-2 well has been perforated and fracture stimulated in a secondary Wilcox zone at 10,300 feet (3139.4m).
FAR said the well is now unloading frac fluid and oil and flow lines are being installed to begin production.
The company farmed-out its proportionate share in Area of Mutual Interest (AMI) acreage comprising 530 net acres to Chesapeake Exploration for the drilling of two wells to test the Middle Wilcox formation.
FAR said the farm-out provided it with a 25% carry to casing point and is subject to the Chesapeake joint operating agreement and letter agreement with operator Dune Energy.
Dune Energy holds a 51.9% net working interest in Welder Ranch A-2, Vaquero-1 and 2 wells, located in an area of mutual interest in the Welder Ranch lease.
FAR farmed-in to earn a 9% working interest in both Vaquero wells and later increased its interest in the Vaquero-1 well to about 9.69%. It owns just under a 0.4% stake in the A2 unit.
Meanwhile, the company said the Lucy B Thomas et al-1 well in the West Andrew Prospect, Vermillion Parish in south Louisiana is drilling ahead at 7877ft after running surface casing to 3551ft.
FAR, which has a 10% working interest in the West Andrew Prospect, said the Lucy B Thomas et al-1 well has a planned total depth of 14,000ft and is likely to take 53 days to drill.
The prospect is a three-way dip fault closure on a 400-acre (almost 162-hectare) lease block in Vermillion Parish and is supported by a combination of subsurface well control and 3D seismic data. It lies on a prolific Camerina trend where historical production exceeds 1.7 trillion cubic feet of gas, FAR said.
The company said it was attracted to the project because of “the relatively low risk associated with the prospect, the multiple Camerina Sand targets, the quality technical control, the attractive indicated profitability and the potential for early production”.
FAR said its working interest will drop to 7.5% after casing point has been reached in the well. The operator of the project is Houston-based Sandalwood Exploration.
