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Miller Energy Resources Inc. has reported an operational update on its
Miller announced that it is in the process of finalizing completion of its RU-9 well. The Company has perforated and tested the Hemlock formation as well as a specific interval in the shallower Tyonek formation and, as a result, the completion will be open to both. A further update on RU-9 will be provided once a reliable flow rate has been established.
David M. Hall, Miller's Chief Operating Officer, commented: "During drilling and logging RU-9, we saw prospective zones in both the Tyonek as well as the deeper Hemlock formations. We decided first to perforate and test the Hemlock formation. Initial results revealed high-quality oil with a low water-cut and variable flow rates that, at times, appeared well in-excess of our expectations. Those results were the basis for our September 15, 2014 update.
"Given indications of potential formation damage around the well-bore incurred while drilling, we decided to re-perforate the Hemlock formation and conduct a reservoir analysis. We also decided to perforate the Tyonek formation while these procedures were taking place and prior to running final completion."
Carl F. Giesler, Miller's Chief Executive Officer, added: "Assessing the optimal completion approach for RU-9 has taken longer than we had expected. Early results confirmed the well's hydrocarbon potential, and our operations team is taking the appropriate steps to optimize its productivity."
Following the completion of RU-9, Miller expects to focus its near-term drilling plans on PUD locations at its Redoubt, North Fork, and WMRU Fields in addition to several low-risk development oil wells at Badami Field on the North Slope.