21 June 2019
- Byron operated SM74 D-14 exploration is currently drilling ahead at a depth of 12,960 MD / 12,320 TVD
- The 9-5/8 inch casing string has been cemented in place at a depth of 12,723 MD and a FIT equivalent to a 17.9 pounds mud weight equivalent has been obtained.
The Board of Metgasco Ltd (ASX:MEL) (Metgasco, or, the Company) is pleased to advise that as of 5:00 pm US Central Daylight Time on 20 June 2019, the Byron operated SM74 D-14 well, the first test well on the South Marsh Island 74 block, is currently drilling ahead as planned at a depth of 12,960 feet Measured Depth (“MD”) /12,320 feet True Vertical Depth (“TVD”). The 9-5/8 inch intermediate casing was cemented in place at a depth of 12,723 feet MD, 10 feet of new formation drilled, and a Formation Integrity Test (“FIT”) with a mud weight equivalent of 17.9 pounds was successfully obtained.
As previously announced to the ASX on 16 May 2019, the SM74 D-14 well is designed to test multiple amplitude supported target sands, prognosed to be intersected at a depth below 13,800 feet (MD), and is expected to be drilled to a planned total depth of 16,747 feet MD/ (14,726 feet TVD) and logged. If the well is productive, a 7-inch liner will be run and cemented followed by a well completion.
In July 2018, Metgasco farmed-in for a 30% working interest (“WI”) in SM74 block (24.37% net revenue interest) via funding 40% of the approx. US$11 million dry hole cost of the Initial Test Well (SM74 D-14) to casing point. Byron Energy Limited will pay the remaining 60%. Both companies will then bear their respective working interest costs after the SM74 D-14 is drilled to total depth.
The SM74 D-14 well is being drilled from the SM73 D platform. As previously announced on 19 September 2018, Byron signed an agreement with Ankor Energy LLC, the offset operator of SM73, to drill from and, in the success case, produce through the SM73 D platform. This arrangement reduces the threshold of economic reserves by eliminating the need to build a new platform and offers significant capital savings in infrastructure as well as reducing the cycle time to first production if hydrocarbons are discovered.
Metgasco will issue progress reports on the SM74 D-14 well as material developments occur.
Contact and further information:
Metgasco welcomes shareholder communication and invites all interested shareholders to make contact at any time.
Philip Amery, Chairman
Phone: +61 02 9923 9100