VPE 0.00% 41.5¢ victoria petroleum nl

Interesting reading for VPE holders, page-5

  1. 1,987 Posts.
    Sorry to be long winded about this but the following information relates to both the Eagle and Kingfisher prospects. VPE is the operator on both these projects but the info comes from the SUR (Sun Resources) website:

    1.1 EAGLE OIL/GAS DEVELOPMENT - 10% INTEREST
    The Eagle Oil/Gas development is targeting a now recognised stratigraphic trap containing 24 million barrels of oil and 62 billion cubic feet of gas (P10 recoverable estimate) in the Upper and Lower Gatchell Sandstone. In 1986, the vertical Mary Bellocchi 1 well on the trap flowed 223 barrels of 42º API oil per day with 820,000 cubic feet of gas per day before excessive water from a poor cement job and migration of fines interfered with the flow of hydrocarbons. It is thought horizontal drilling technology, not available in the mid 1980’s, should solve the well engineering problems that occurred during completion and testing of the vertical well, and importantly result in a 3 to 4 fold increase in oil and gas flow rates.

    Development drilling of Eagle 1 by horizontal drilling was completed mid August 2001. Drilling was considered to be a relatively low risk operation due to demonstrated flows of oil and gas from the target sand. However, it was plagued by mechanical problems which caused non completion of a 300 metre horizontal leg within the best productive porosity of the Lower Gatchell Sandstone and Eagle 1 was left with a 4½ inch liner string within stuck pipe in the hole for completion and production testing of the Gatchell reservoirs with a coiled tubing unit. This method of proposed completion to recover hydrocarbons to the surface is not uncommon in the USA. Interpretation of data indicates gross pay of 131 metres (net pay of 91 metres) was intersected in the near horizontal well bore over the interval, 4,177 metres to 4,207 metres (30 metres) in the Upper Gatchell and 4,229 metres to 4,330 metres (101 metres) in the Lower Gatchell. This pay was noted to have good to excellent porosity and in spite of the high mud weight used in drilling, indications of hydrocarbons were present namely suppressed fluorescence and C1 to C6 hydrocarbon readings. Of importance is the fact that the pay is some 6 to 7 times the extent of the combined vertical thickness of the Gatchell sands encountered in the adjacent Mary Bellocchi 1 well which flowed 223 barrels of oil and 820,000 cubic feet of gas per day to the surface.

    The gross pay of 131 metres will be tested in September quarter 2002 when Operator, Victoria, has resolved the problem of a defaulting US partner.

    1.2 KINGFISHER PROSPECT - 10% INTEREST
    Drilling of the Kingfisher Prospect was completed on October 10, 2001. Unlike Eagle it was a trouble free operation and reached a total depth of 4,274 metres. The tested structural trap was unique in that five stacked primary objectives (Monterey, First Vedder, Second Vedder, Domengine and Morris) and four stacked secondary objectives (Mya, Olcese Valqueros and Nortonville) that were present were penetrated by a single well test ending in basement.

    Hydrocarbons were detected in the Mya, Olcese, Third Vedder, Valqueros (secondary targets) and Monterey and Morris (primary) targets. Electric logging and wire line fluid recovery (MDT) determined the Monterey as being the only target of significance. The Upper Monterey, an unconventional fractured chert reservoir, was shown to have a gross 86 metres hydrocarbon column over the interval 2,344 metres to 2,430 metres, with the zone having high porosity but low permeability. Gas appears to be the dominant trapped phase with lesser indications of oil. This section of the Upper Monterey particularly at the 2,938 metre level is comparable to well sections in the NE Wasco – Shafter Oilfield trend 12 kilometres to the south where horizontal drilling with subsequent fracture stimulation has allowed flow rates of 1000 to 2000 barrels per day. Field size in this trend is of the order of 20 to 30 million barrels of oil recoverable.

    Following engineering advice it was decided to complete current operations and leave the Kingfisher 1 well in a suspended state so that the well bore can be re-entered and an up to a 900 metres horizontal well in the zone of interest be drilled at a later date with subsequent fracture stimulation to flow hydrocarbons. A potential reserve of up to 22 million barrels of recoverable oil for the oil case and in excess of several hundred billion cubic feet of gas in place for the gas case has been estimated by the Operator for the net 3,300 acre lease position the joint venture holds.

    The forward plan on the exact nature of the horizontal drilling is conditional on detailed evaluation of all available technical information, ie Kingfisher 1 well bore data, seismic and importantly comparisons with known adjacent Monterey production oil zones through well data trades with other field operators. It is pointed out the majority of mineral and oil/gas ownership in the US is private with very little technical data lodged in the public domain (ie State Mines Departments). This is unlike the situation in Australia where minerals and oil/gas belongs to the state and all exploration data must be filed as a condition of state and federal licences. Obtaining enough technical data from others on an unconventional fractured chert reservoir such as the Monterey is critical to being able to carry out a successful future evaluation of the prospect. During the quarter the Operator commenced negotiations to obtain proprietary data through well data trades. Timing of a re-entry and evaluation of the Monterey is presently unknown.


    Cheers

    Badfish
 
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