Progress on Pelahatchie field; permit received to drill Gillsburg field
well
Westfort Energy Ltd WT
Shares issued 22,230,583 Sep 15 close $0.95
Wed 16 Sept 98 News Release
Ms. Jean Williams reports
Westfort Energy has provided the following report on the progress on its
drilling activities at Pelahatchie field.
The Johnny Rhodes 7-6 well, completed five weeks ago, continues to flow
naturally at a rate of approximately 200 barrels per day, with no water.
The oil is a high gravity (52 degrees) that brings a premium price in the
market.
Westfort's geologist has estimated that there are an estimated 546,000
barrels of oil to be recovered in the well from this one 40 acre unit. The
company is encouraged from the results thus far as this same zone presently
perforated (referred to as the 11,300 foot Hosston sand) is mapped
geologically to cover a large part of the field under lease and will be the
target for a number of additional 12,000 foot wells. In the newly drilled
18-4 well, a larger column of oil was evaluated in this zone than in the
Johnny Rhodes 7-6 well.
The Pelahatchie Deep unit 18-4 well is currently being completed in a Lower
Hosston sand at approximately 11,700 feet (a new pay zone for the field).
Because of mechanical problems incurred in the bottom of the hole at the
Norphlet level, a sidetrack drilling operation was attempted, but proved
too costly to complete at the present time. Instead, the company has
elected to use its own rig to complete one of the numerous shallow zones
for immediate production, and plans to return to the Norphlet in this well
at a later date. The well encountered the Norphlet zone 23 feet high to the
discovery well approximately 2,000 feet southeast of the 19-4 well site,
and contains an estimated 107 feet of oil column.
Encouraged by verification of the seismic and geological data obtained in
the 18-4 well, the company plans to drill additional Norphlet wells and is
presently negotiating favourable debt financing which will enable it to do
so. A permit to drill the Pelahatchie Deep 7-13 No. 1, a north offset to
the recently drilled 18-4 No. 1 well, has been received from the
Mississippi State Oil and Gas Board, together with a permit for the south
offset location, Pelahatchie Deep unit 13-16 No. 1.
The company's geologist continues to map and evaluate other numerous
oil/gas zones found in the Pelahatchie Deep unit 18-4 well. Preliminary
estimates so far indicate primary recovery possible of 688,000 barrels of
oil from 10 of the lower Cretaceous zones from 8,780 feet to 11,800 feet.
Other possible productive zones to 12,500 feet are still being evaluated.
In the Cotton Valley formations, a study is not complete, however at least
five sands look productive. One 8 foot zone in particular is estimated to
contain at least 2 billion cubic feet of recoverable gas on 640 acre
spacing.
Evaluations also indicate that the Buckner/Haynesville formation at
approximately 15,800 feet contains a 14 foot zone that indicates
recoverable reserves of 3.5 bcf on 640 acre spacing, while the Smackover
formations, below 16,400 feet indicate that 25 bcf of methane gas can be
obtained on each 640 acres from this formation.
The company has also recently received a permit to drill the Williams 34-1
well at its Gillsburg field. This will be an 11,800 foot Lower Tuscaloosa
development well. The company presently operates three wells in the field
together with a salt water disposal well. Plans are to commence operations
on this well before year end.
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