A drilling rig should arrive at the site of the new well, Rosewood Plantation 21H, within two weeks, according to Pryme Energy of Australia. Pryme said it learned many lessons from previous wells in the area which came up short, leading to a pull back and restudy of the area. Now, Pryme, with a new form of funding, is ready to try again.
The wells in this area of the parish are targeting the Austin Chalk formation. But the Tuscaloosa Marine Shale (TMS) may also hold oil in the area. In the north and central part of Avoyelles, there are two wells currently underway, one in Brouillette and one in Hamburg. A third well may be drilled in Brouillette in a new unit to the west of the current well site.
Here is the news release from Pryme:
Drilling to Restart in Turner Bayou
Operations Update
HIGHLIGHTS
Drill rig to arrive on site within two weeks
Pryme appointed project operator
Substantial changes to engineering and completion procedures have been made
The Rosewood Plantation 21H well
Preparation of the drill site for Pryme Energy Limited’s (Pryme) next well in the Turner Bayou project,
the Rosewood Plantation 21H, is advanced and the drill rig is expected to begin moving to site within
two weeks. Drilling of the well will begin shortly thereafter. Weekly updates on drilling progress will
be released to the ASX each Tuesday morning Australian Eastern Standard Time.
Pryme appointed Operator of the Turner Bayou project
Pryme’s wholly owned subsidiary, Pryme Energy LLC, has been appointed operator of the Turner
Bayou project.
“Our relationship with Nelson Energy, the former operator of the project and an equity participant,
remains strong as we embark on drilling the Rosewood Plantation 21H together. Both Pryme and
Nelson Energy are participating in this next well to the full extent of their equity interests as well as
assuming their proportionate shares of any non-consenting interest,” said Justin Pettett, Pryme’s
Managing Director.
Interest in the Rosewood Plantation 21H (Pryme 54.6% WI / 40.95% NRI)
In addition to its 40% working interest (30% net revenue interest) in the Turner Bayou project, Pryme
has the opportunity to fund an additional 14.6% working interest (10.95% net revenue interest) of
non-consenting interest in the Rosewood Plantation 21H well. In accordance with the terms of the
Turner Bayou joint operating agreement, Pryme will receive 100% of net revenues attributable to the
non-consenting interest until it has recovered 300% of the costs of drilling, completing and bringing
the well into production attributable to that interest. Following this, Pryme’s participating interest in
the well will revert to its 40% working interest.
Completion changes and Engineering
Following mechanical problems which were encountered in the completion of both the Deshotels 20H
and 13H wells and prevented them from realising their oil production potential, Pryme engaged an
experienced engineering team to evaluate the past drilling and completion performance of the wells
and determine a lower risk approach to the continuing development of the Turner Bayou project. As
a result, a simpler and well-proven approach to completion of future wells has been adopted. This
includes running a slotted or perforated liner in the horizontal section of the well, not cementing it in
place and avoiding the need to perforate the liner.
“These changes, as well as the application of improved drilling technology to keep the lateral portion
of the well within the target zone, should greatly increase oil recovery and reduce technical risk.” Said
Ryan Messer, Pryme’s Executive Director & COO.
About the Turner Bayou Chalk Project
Pryme has a 40% working interest in 25,791 acres (10,316 net acres) in the Turner Bayou Project
and is initially targeting development of the Austin Chalk horizon. Up to 30 gross Austin Chalk well
locations are possible within the project area based on a 640 acre well spacing.
Wells to test the Austin Chalk formation within Turner Bayou are located using Pryme’s proprietary
3D seismic data, drilled to approximately 15,000 feet vertical depth and then horizontally for a further
4,000 to 6,000 feet targeting major phase oil. Naturally occurring fracture systems within the chalk
act as the reservoir and typically do not require stimulation. Pryme has drilled two Austin Chalk wells
within Turner Bayou (Pryme 40% WI) to date. The second well, the Deshotels 13H, returned an
initial potential rate of 1,167bpd of oil and 600Mcf/d of natural gas despite a sub optimal completion
method and resulting mechanical issues.
In addition to the Austin Chalk potential of the Turner Bayou project area, exploration drilling within
Pryme’s Turner Bayou leases has intersected the Tuscaloosa Marine Shale (TMS) which is the
equivalent of the prolific Eagle Ford Shale in South Texas. Several exploration and production
companies operating in proximity to Turner Bayou have achieved encouraging results from tests of
the TMS. The Company will continue to monitor this activity and update the market as appropriate.
