In December 2014, our 197(2) well located on Block 197 in the Recôncavo basin in the State of Bahia, Brazil, reached a total depth of 1,669 metres, discovered natural gas, and was cased and cemented. Based on logs, the 197(2) well encountered 78 metres of continuous potential net natural gas pay, with an average 33% water saturation and an average porosity of 12%, using an 8% porosity cut-off. Given the geological potential displayed on logs, our initial plan is to separately test the productivity of three intervals.
We have perforated and completed the deepest sandstone interval, at 1,460 - 1,469 metres, which was chosen to test the fluid and reservoir pressure at the lowest point of the continuous gas column. The second intervals expected to be tested, from 1,371 - 1,376 and 1,384 - 1,389 metres, are our primary target as they contain the highest quality reservoir in the column, with 10.5 metres of potential net pay and 13.6% average porosity. Subject to results, the third interval to be tested will assess a sandstone reservoir forming part of the continuous column at 1,322 - 1,327 metres that averages 10.4% porosity in 2.2 metres of net pay and has no stratigraphic equivalent in the offset well.