Some interesting numbers on ELH production and future well costs from Trimark's Annual Information Form.
<<Exploration
The initial test well, the Bellevue #1-17, commenced drilling in May 1998 and was designed to test prospective Miocene sandstone reservoirs in the Temblor formation of depths to an anticipated 18,500 feet. On November 23, 1998, while drilling at 17,640 feet, the well blew out and ignited and an expert well control team was engaged to contain the fire. The control team was able to contain the well, with water, natural gas, natural gas liquids and oil being separated and delivered to disposal and processing facilities. To May 20, 1999, the Bellevue #1-17 has produced in excess of 3 BCF of gas, 150,000 BO and condensate and in excess of 3,000,000 BW. This production is providing evidence of a major gas and oil discovery.
A relief well, the Bellevue #1R-5T#2, was commenced on December 18, 1998 in order to “kill” the flow of water and hydrocarbons flowing out of the Bellevue #1-17 well. On May 29, 1999, the Bellevue #1-17 was confirmed killed. Heavy mud and cement were pumped through perforations into the #1-17 wellbore from the #1R-5T#2, which had been drilled to a depth of 16,668 feet. The Bellevue #1R-ST#2 will be plugged back and sidetracked to a new bottom hole location approximately 1,000 feet away from the bottom hole location of the Bellevue #1-17. It is anticipated that this sidetracked hole will be successfully completed as a producer in the Temblor Group Sands in the second or third quarter of 1999. Estimated costs for this sidetrack operation are US$6,000,000 of which the Company's share will be US$60,000. In addition, Berkley, as operator, has announced plans to drill the first development well on the East Lost Hills Prospect in August of 1999. The estimated gross well costs are US$10,000,000 per well of which the Company's share will be US$100,000.
With respect to the San Joaquin Joint Venture, Berkley has announced plans to commence the initial exploratory well on the first of the three new prospects comprising the San Joaquin Joint Venture in June 1999. The well is expected to be completed in the fourth quarter of 1999 and estimated well costs are also approximately US$10,000,000. The second and third prospects will be drilled during the first and second half of 2000 respectively and are also expected to cost approximately US$10,000,000 to drill each well, of which the Company's share will be US$300,000.>>
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