Morumbi Oil & Gas has successfully drilled and cased its recent 102-12- 33-65-22W5M well to a total depth of 1460 meters, which is its first well on the McKinley Prospect in northwestern Alberta. Despite some drilling delays and warm weather conditions, the latter of which have resulted in an earlier than anticipated Spring Break-up, the Company was able to complete drilling operations in early March.

The well encountered the targeted Cadotte reservoir approximately 2 meters structurally higher than the highest offset wells drilled to date in the McKinley Cadotte light oil pool. Based on logs, the well encountered a little over 9 meters (30 feet) of Cadotte sand with porosity in the range of 13% to 23% with the best porosity (average of about 20%) present in the top 3.5 meters of the Cadotte sands penetrated by the well. Oil and gas shows were experienced in the drilling but full completion and testing of the well has been delayed as a result of the early break-up which closed the Suncor operated Simonette service road used to access the Mckinley Property.

The new 12-33 vertical well was drilled approximately 8.0 meters east of the original 12-33 horizontal well bore which encountered generally excellent porosity in excess of 20% and good oil staining. Morumbi had planned to drill the new 12-33 well approximately 10 meters to the west of the original horizontal well bore but surface conditions including a river embankment resulted in the well being placed 17 meters east of this original location. The original horizontal directional surveys suggest the well is positioned in the lower sand penetrated in the new 12-33 vertical well, approximately 7 meters lower than the top of the Cadotte formation penetrated.

Morumbi plans to complete the well as soon as surface conditions permit after spring break-up. The Company is in the process of designing the completion program including a fracture stimulation of the well bore with the view to fracing into more of the main reservoir sands encountered in the original horizontal well bore. Morumbi's assessment is that the vertical well is on the eastern edge of the McKinley Cadotte oil pool which is why we believe that we encountered tighter Cadotte sands in the lower portion of the zone (reservoir quality sand would be in the 18% porosity range) despite the fact that these same sands situated 8 meters to the west have better indicated porosity on geological sample logs in the plus 20% range.

Tags: Morumbi Oil & Gas