Exploration & Production

Target Sees Encouraging Results in Permian Basin; Talks Ops

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Target Energy Limited has reported an operations update on its Fairway Project in the Permian Basin, West Texas.

• Drilling is now underway at BOA North #5 in Howard County (Table 1), in which Target has a 50% Working Interest . The well will be drilled to a planned depth of 3,030m (9,942 ft) and will test both the Fusselman and Wolfberry targets.
• Following BOA North #5, the rig will mobilise to the Taree #1 well in Glasscock County, in which Target has a 50% WI. The well lies approximately 2 km south east of the Ballarat 185 #1 well. The well will be drilled to a planned depth of 3,048m (10,000 ft) and will test both the Fusselman and Wolfberry targets. 
• Drilling at Bunbury #1 has been rescheduled to Q4 to accommodate delays in site building. The partners have agreed to move the proposed Darwin #4 well forward to replace Bunbury. Darwin #4 will be located just to the south of Darwin #1 (Fusselman production) in Howard County and will target both Fusselman and Wolfberry objectives. Drilling at Darwin #4 is expected to be underway in September. Target has a 50% WI in the Darwin lease.
• Wagga Wagga #2 was put on pump on 1 August 2014 following fracture stimulation in July. Oil production at the well has continued to increase with last reported production of 110 BOPD with 195 BWPD. Approximately 12,500 barrels of load water are yet to be recovered. Target has a 35% WI in the Wagga Wagga lease.
• Homar #1 was put on pump on 5 August 2014 following fracture stimulation in July. In the first 3 days of production the well averaged 49 BOPD with 234 BWPD and (estimated) 150 mcfgd. Approximately 12,037 barrels of load water are yet to be recovered. Target has a 50% WI in Homar #1.
• Fracture stimulation at BOA North #4 is imminent with the work scheduled to commence in the week of 11 August 2014. Target has a 50% WI.

Managing Director, Laurence Roe commented: "Both Homar #1 and Wagga Wagga #2 are now on pump and initial flow rates look encouraging. With the stimulation of BOA North #4 planned for this week we expect to see these wells add to our production rates. Although, as we previously noted, it is taking longer to schedule fracture stimulation crews, we expect to get a crew to Ballarat 185 #1 in mid-September.

"In the meantime we will complete our drilling programs at BOA North #5 and Taree #1 -- the rig will then move off to drill one well in an adjacent area before returning to Darwin #4 in late September.

"The remainder of 2014 will be a busy period for Target and the Board remains confident the Company is on track to complete its 10 well drill program by the end of the year."