Petsec Energy has commenced drilling of the Ruth R. Bravanec, et al #1 well on 7 January 2015. The well is being drilled on the West Crab Lake exploration gas/condensate prospect, located in Cameron Parish, onshore Louisiana, approximately 45 miles south of the city of Lake Charles. LLOX is the designated operator of the well.
The well is being drilled directionally to a true vertical depth (TVD) of 12,500' (12,911' MD) to test multiple Lower Miocene age Marg (A) and Discorbis (B) sand reservoirs in a fault closure syncline separated from production in the Marg (A) and Discorbis (B) interval at Crab Lake Field. The well is expected to take approximately 30 days to drill.
Petsec has a 20% non-operating working interest (15.5% net revenue interest) in the well before payout ('BPO'). After payout ('APO') Petsec's working interest will be reduced to 15.5% (11.16% net revenue interest). The Company's share of upfront and drilling costs is estimated to be US$920,000. Completion and hook-up of the well is estimated to cost an additional US$272,000 net to Petsec.