PRODUCTION CASING TO BE RUN DUE TO EXCESSIVE GAS IN THE WELL
This NR From FGD today:
First Goldwater Resources Inc. (the "Company") is extremely pleased to announce that the operator has informed us that the Well has encountered the largest gas units experienced in the hole to date. Due to these excessive gas units, the operator feels that running production casing immediately to 10,160 feet is the most prudent step to control the Well due to the large amounts of gas present in the hole. After review of the current operations the operator feels that it would appear that with the Martinez Sands we have a commercial Well. The intentions are to continue to drill down to the Brown Mountain Sands after the production casing has been set. The Well recently encountered three additional drill breaks and according to the operator, all had excellent gas shows that were better than seen in the original hole. The operator also reports that between 9,950-10,000 feet the Well had very good live oil shows as well. The significance of these shows is the mud weights are as high or higher at these depths than in the original hole. The Company has a 10% working interest in this Well.
The Coalinga Nose Prospect is a parcel of 8,730 acres of leased land located in Fresno County, California, and is located less than one mile southeast of the East Coalinga extension which has produced 503 million barrels of oil. The prospect is also less than one mile northwest of the Kettleman Hills field that has produced 2.9 trillion cubic feet and 458 million barrels of oil.
Over $4,000,000 USD has been spent on the prospect including a 3-D seismic survey shot in 1997 covering 16 square miles including the prospect area. According to consulting engineer, Mark Anderson, this is a "superior prospect based on a quality modern 3-D seismic grid, abundant and thoroughly mapped well control" and "both production and downdip shows in the target horizon." Mr. Anderson also stated that the 3-D seismic data "clearly corroborates existing production from known stratigraphic and structural features" from the Cretaceous Brown Mt. formation that is largely untested in this area.
Only one well has penetrated the Cretaceous Brown Mt. Sand within the seismic shoot area and that was drilled in 1942. This well had significant untested gas shows in the Brown Mt. Sand from 11,455 feet to the bottom. Originally drilled for oil, the off-scale gas shows at the bottom of the well were not tested and the well was abandoned due to a lack of a natural gas market during World War II. Four-way closure can be observed within the prospect area where the Brown Mt. Sand is up to 400 feet thick. This prospect is being tested with an 11,500-foot well located one mile to the northwest and 500 feet up dip of the 1942 well within the best amplitude response for this fault block. |
