Olympic Resources Ltd -
Louisiana exploration update
Olympic Resources Ltd
ORL
Shares issued 9639378
1998-04-08 close $0.6
Wednesday Apr 8 1998
Mr Daryl Pollock reports
The company recently announced a farmin agreement with Diaz Resources Inc in relation to Diaz's 23%
interest in the South Lakeside prospect in Cameron Parish, Louisiana. This exploration prospect entails
the re-entry of a cased well, drilled in 1997, and the side tracking of the new well with the object of
encountering gas bearing reservoirs within the miogypsinoides sands of tertiary, oligocene age.
The original well on the prospect encountered significant high pressure gas shows at approximately
17,000 ft, close to the prospective horizon and was abandoned by the operator without a completion
attempt. Geophysical information over the prospect identifies a large structural closure, updip from a
well drilled 2.5 miles to the west which encountered 400 ft of wet miogypsinoides sand with
hydrocarbon gas shows.
The potential exploration upside, should the prospect be productive, could be as large as 500 billion
cubic feet, similar to the South Thornwell field and Lake Arthur fields, 10 miles to the north of the
prospect and which have to date, cumulatively produced 170 bcf and 655 bcf respectively, from the
miogypsinoides zone.
Initial production rates from the target horizon in adjacent pools have been in excess of 20 mmcf/d, as a
result of the extremely high reservoir pressure, 18,000 psi, encountered in the miogypsinoides zone.
Should the proposed re-entry be hydrocarbon bearing and encounter similar reservoir properties,
comparable production rates are anticipated.
As previously announced, the re-entry operation is anticipated to begin in late May. |
