19th Feb RNS20 Dec 2020 15:47
All is not lost on CLix - 1001
The primary Lobe C target was perforated over a three metre interval between 2,214m and 2,217m and mechanically stimulated. Following clean out operations, the well flowed at surface at an estimated rate up to 0.28 MMScf/d with an estimated average rate of 0.25 MMscf/d. No condensate was retrieved from the interval, which is in line with the mud-log showing 93% methane.
To achieve the threshold of commerciality, it is estimated the well would require a stabilised production rate across the intervals of approximately 1.0 MMscf/d, which was not achieved from the Anita and Lobe C targets.
As a result, testing of the shallower Magallenes 60 interval, which was the upper secondary target of the CLM x-1 well, and the Magallenes 40 interval is now under consideration with the objective, in aggregate with the flow rates achieved from the intervals already tested, of seeking to exceed the commercial threshold. These additional sand intervals showed elevated gas shows during drilling and, whilst there can be no assurance that further testing and/or commerciality of the well will follow, further technical work will now be undertaken by the Tapi Aike partners to aid the consideration of whether testing of these additional intervals should be undertaken. In the interim, the CLM x-1 well will be shut in for evaluation and the Well Head Pressure will be measured during this time.
Whilst the lack of commerciality from the tested intervals is disappointing, the CLM x-1 well has proven the presence of a working petroleum system on the Chiripa Oeste 3D seismic in Tapi Aike, with the Class III amplitude vs offset ("AVO") characteristics being a successful predictor of the presence of gas. The data and information collected to date from the CLM x-1 well will be used to calibrate and further enhance the predictive capability of the 3D data acquired last year to identify other drilling locations that could be commercial.
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