TG World Energy Corp. provides an update on the Alaska Central North Slope winter 2008 exploration program, which is being carried out by the project operator Brooks Range Petroleum Corporation (“BRPC” or the “Operator”).
The North Shore #1 well was re-entered by the Operator on January 10, 2008. The Operator has advised the Company that the bottom 1,000 feet of the original well was re-drilled in a sidetrack to 13,361 feet total depth (“TD”), to a location 153 feet offset from the original bottom-hole location, and that production liner (4.5”) was run to TD. The Operator has also confirmed that the Ivishak and Sag River Formations were perforated before releasing the rig on February 6, 2008.
TG World has been advised that the Ivishak Formation was successfully tested using a Coiled Tubing Unit. The 22 foot perforated zone near the top of the Ivishak flowed when lifted with nitrogen, and had oil to surface at 2300 hours on February 19, 2008. After cleaning up load brine and mud filtrate, the well flowed oil for a total of 16 hours with continually decreasing water cut and salinities indicative of completion brine. The final 5 hours of testing recorded a stable oil flow rate of 2,092 barrels of oil per day (“bopd”) of 34 degree API oil. The North Shore #1 well is located 1,100 feet to the west of, and is interpreted to be in the same Ivishak oil pool as, the Gwydyr Bay South #1 well, which reportedly flowed at a rate of 2,263 bopd from a 35 foot perforated zone on a production test conducted in 1974. The Company has a 35% working interest in the North Shore #1 well.
Due to mechanical issues down-hole, the test on the Sag River Formation has not been completed. The Joint Venture participants are currently evaluating their options. An update is expected to be provided by the Operator when a decision has been made.
“We are pleased with the successful test results from the Ivishak formation in the North Shore #1 well,” said Cliff James, President and CEO of TG World. “Further upside remains in the untested Sag River formation in the North Shore #1 well and from two 3D seismically-defined, drill ready targets that also have both Ivishak and Sag River potential. Both of these can be reached from the North Shore drilling pad. Future results will allow determination of potential commerciality.”
