Entek Energy Limited report the spud of its VR 342 well in the Gulf of Mexico.

The Company has a 50% working interest in VR 342, and the well that is targeting a fault block on a structure which has proven oil pay evidenced by previous drilling. The pay is associated with a far-offset seismic amplitude anomaly with good fit to structure. Water depth at the well location is 220'. The well is currently at 4,036' with planned total depth of 8,552'. The well is being drilled by Hercules, Rig 253, and is being turnkey operated by ADTI, protecting Entek from potential cost overruns.

The primary reservoir target for the well is the Pleistocene Lentic 1 sand. Side wall cores from the previous wells show good permeabilities and oil saturations, and given a number of existing producing analogues to the targeted pay zone the new well will be tested with MDTs only. Flow rates will be estimated from permeability measurements and analogue production, as is common practice in the Gulf of Mexico where numerous existing producing analogues give a high level of confidence.

The gross 3P potential, established by previous drilling on the VR 342 block, has been independently evaluated at circa 7.5 MMBO and 9.5 BCFG. Drilling is expected to take approximately 4 weeks and if successful (based on electric logs and MDT results), will be suspended as a producer prior to planning for the development of the block.

The Company also plans to subsequently test the potential extension of the prognosed field into the adjoining VR 341 (Entek 50% working interest), which could add significantly to the current assessed reserves, and which, if successful, would be targeted for production after any development of the existing assessed reserves.

Tags: Entek Energy Limited