Alvopetro Energy Ltd. (TSX-V:ALV) is pleased to announce production test results from the second interval tested in our 198(A1) well.
In January 2017, our 198(A1) well, located on Block 198 in the Recôncavo basin in the State of Bahia, Brazil, was drilled to a total measured depth of 1,480 metres. Based on open-hole logs, the well encountered 31 metres of potential net natural gas pay in the Main Caruaçu Member, with an average 46% water saturation, and an average porosity of 11.4%, using an 8% porosity cut-off. The well also encountered 26 metres of potential net hydrocarbon pay in a series of thinner up-hole Pojuca sands, with an average 51% water saturation, and an average porosity of 14.3%, using an 8% porosity cut-off. Earlier this month we perforated and completed the deepest sandstone interval and completed a 48-hour tubing conveyed perforated cased-hole test. This average 12.0% porosity, low permeability interval flowed natural gas, on an unstimulated basis, at an average rate of 15,000 m3/d (0.5 MMcfpd or 89 boepd), using 2-7/8 inch tubing, from the Caruaçu Member of the Maracangalha Formation. During the duration of the test the choke was adjusted from an initial 12/64" choke to a final 32/64" choke. We are awaiting results of the pressure transient analysis from this first interval.
We have now perforated and completed the second sandstone interval, representing 21 metres of potential net pay, 11.5% average porosity and 15.4% maximum porosity. This section represents the main reservoir section of the well. Over the 72-hour, tubing conveyed perforated cased-hole test of the second interval, our 198(A1) well flowed natural gas, on an unstimulated basis, at an average rate of 76,000 m3/d (2.7 MMcfpd or 447 boepd), using 2-7/8 inch tubing, from the Caruaçu Member of the Maracangalha Formation. During the duration of the test the choke was maintained at a 28/64" choke. During the test, in addition to the natural gas, and not included in any flow rates reported in this press release, we recovered 17 barrels of 64° API condensate and 5 barrels of formation water.
Cumulatively, over the duration of the 72-hour test, the well produced 228,000 m3 (8.1 MMcf) of natural gas. At commencement of the test, the flowing tubing pressure at the wellhead was 8,830 kPa (1281 psig) and decreased to 3,380 kPa (563 psig) at the end of the test. The initial shut-in casing pressure in the wellbore at commencement of the test was 9,270 kPa (1345 psig) and the ending shut-in casing pressure was 4,240 kPa (615 psig).
The 198(A1) well will be shut-in to measure reservoir pressure and obtain pressure build‑up data to undertake a pressure transient analysis, which will allow Alvopetro to predict productivity of this second zone. After completing the pressure build-up test, the second interval will be suspended temporarily with a bridge plug and the testing equipment will be demobilized.
Alvopetro Energy Ltd.'s vision is to be the premier independent exploration and production company in Brazil, maximizing shareholder value by applying innovation to underexploited opportunities. Our strategy is to focus on three core opportunities including lower risk development drilling on our mature fields, shallow conventional exploration, and the development of the significant hydrocarbon potential present in our deep Gomo tight-gas resource play. Our efforts in the near-term are concentrated on building a natural gas business by finalizing a unitization agreement and securing a gas sales contract.
SOURCE: Alvopetro Energy Ltd.
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