Operational Updates | Drilling / Well Results | Production | Key Wells

Northern Minerals Flows Three Well Reworks in Central Texas

Share Print Bookmark    |    Tuesday,July 21,2015

Northern Minerals & Exploration Ltd. has successfully completed the re-work and/or re-completion of three oil and gas wells on the Coleman County lease in central Texas.

The Coleman County 206.5 acre lease is located in a prolific multiple pay area originally discovered by ARCO in the early 1980s. The lease area has six known historic productive formations: Ellenburger (4,200'), Gray (3,850'), Gardner (3,700'), Jennings (3,600'), Upper Capps (3,450'), and Morris (3,400').

One of the three wells on this Lease (the Concho Richey #1) is a direct offset to a well on an adjoining lease that has produced more than 65,000 barrels and 160 million cubic feet of gas also from the Gray Sand formation. This offset well after 28 years of production is still producing an average of 6 barrels and 28 thousand cubic feet of gas per day.

Well Summary

The re-work on the J.E Richey #1 well consisted of replacing downhole equipment as needed and conducted an acid/xylene treatment to clean well bore the perforations and to stimulate the Gray Sand formation. This well is open in the Gray Sand formation. This well has tested positive for production of oil and gas and is ready to produce subject to getting the gas meter run installed.

The re-work on the J.E Richey #3 well consisted of replacing downhole equipment as needed and conducted an acid/xylene treatment to clean out the well bore, the perforations and to stimulate both the Morris Sand and Gray Sand formations. This well is open in both the Morris Sand and Gray Sand formations. This well has tested positive for production of oil and gas and is ready to produce subject to getting the gas meter run installed.

The re-completion of the Concho Richey #1 well consisted of replacing the downhole equipment as needed and sealing off the perforations in the Tannehill formation followed by perforating into the Gray Sand formation. A two stage process was initiated to stimulate the Gray Sand, an acid treatment followed by a sand frac. These treatments were successful in dramatically improving the entry of oil and gas and significantly improved the pressures on the well. This well has tested positive for production of oil and gas and is ready to produce subject to getting the gas meter run installed.

Subsequent to the work on the three wells and setting them for production Northern has been in the process of arranging a 24 hour production test and analysis on the gas flow. This testing and analysis is required for the purchase contract with the local gas buyer. An agreement for the purchase of the oil is already in place. The 24 hour production test was set to be completed on July 14 to test the gas flow from the Concho Richey #1 which has the highest pressure of the three wells on the lease.

During the gas production testing on the Concho Richey #1 well, the well had higher than expected pressure as oil and gas was coming in very strong from the formation. It appears that the sand frac treatment has worked well in stimulating the Gray Sand formation in the Concho Richey #1. Due to the higher than expected pressure and the strength of the gas and fluid flows from this well, for safety reasons, the testing was stopped. This was done so that the surface production equipment could be analyzed and tested, and some equipment changed to handle the higher than expected pressure and strong oil and gas flows from the well. This work has now been completed. The gas production testing and analysis has now been rescheduled to be undertaken this week.

The lease is fully equipped with surface equipment including flow lines, production tanks, meter connections and gas gathering pipelines. With the gas contract completed production of oil and gas will commence from all three wells. Once steady production has begun, the production potential of these wells can be tested to determine the optimum rate to produce oil and gas from these wells on the Coleman County lease.