Samson 100% Working Interest
Two wells were drilled in this project area in 2000 to evaluate the Frontier/Muddy Dakota reservoirs. Mechanical difficulty with both of these wells has meant that the Muddy Formation has never been completed satisfactorily, despite very encouraging initial flow rates.
In 2006, an existing well bore was used to drill a highly deviated under balanced test of the Baxter Shale in the Greens Canyon Field. Hole stability problems did not allow the under balance drilling technique to be utilized and the well failed to recover commercial quantities of hydrocarbons. However, the drilling has provided additional information suggesting that the future programs should be aimed at fracture stimulating the Baxter Shale.
Also in 2006, a fracture stimulation of one of the Baxter zones was undertaken in the 29-2 well. This stimulation resulted in an incremental flow rate of around 60 to 100 MCFPD. This rate, while modest, was in line with expectations because the treatment was over a 305-foot interval, compared to a total section thickness of 3,500 feet. In management’s view, the flow indicates that the Baxter Shale is capable of flowing at rates similar to those being achieved in the Vermillion area to the southeast of Samson project area.
To evaluate these reservoirs further, the drilling of the Sue Federal 32-2 well is planned in the second half of 2007. This well will target all four reservoirs in this field. The Frontier, Muddy, Dakota and Baxter Shale in the vermillion area will all be evaluated with this well. There has recently been a significant increase in the indicative productive capacity of the Baxter Shale, with a recent Questar well reported to flow at an initial rate of 9 mmcfpd from that formation.
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