DENVER, Aug. 27, 2012 /PRNewswire/ -- Grid Petroleum Corp. (OTCBB: GRPR): The Board of Directors is pleased to announce that Grid Petroleum has received from the Premont Joint Venture Operator, Progas Services Inc, a geological summary derived from the core analysis of the Garcia #3 percussion core samples taken the week of August 22 through August 24, 2012 by Geologist Patrick Robinson.
"The Progas 'Garcia' #3 well in the Premont Northwest field was drilled to a depth of 3780' and logged on August 19, 2012. This well was a 1200' offset to the south of the Progas "Garcia" #2 well which is producing 10 bopd from the Lower Bardsdall Frio sand at from 3434'-44', after that zone has produced close to 30,000 bbls of oil. The primary objective for this well was to establish production from the Lower Bardsdall sand while evaluating other Miocene and Frio sands.
Weatherford ran a triple-combo log from total depth to 1500' (Nuclear and electric log), and took 48 percussion sidewall cores in the well, recovering 47. Core and log analysis indicates that the well encountered 3 well developed potentially productive oil sands and 6 gas-productive sands totaling 104' of gas sands and 29' of oil sands. The total potentially productive pay in this well total 133'. Completion targets are to be the oil sands. Gas sands will likely be left behind pipe until gas prices rebound, which they always do over time, as demand increases and supply diminishes due to lack of drilling from gas being as such low prices.
The well is pleasant surprise since the oil sands in this well seem to be much more developed and much higher on structure than anticipated. After analyzing the log and cores in this well, it was determined that the objective Lower Bardsdall, our primary target sand was present and 11' thick with the top found at -3216' (8' structurally high to this producing sand in the "Garcia" #2 well.) In addition to the oil-bearing Lower Bardsdall sand, two other probable oil sands were found in this well, the 16' thick Bardo sand and 5' of the Caddo sand (under 4' of gas) for a total of 29' of oil sand. The Bardo is much higher on structure (see comments below) and the Caddo appears to be running about 2 to 3 feet higher on structure than offset wells.
A summary of a few of the potentially productive oil and gas sands found in the Progas "Garcia" #3 well based on core and log analysis are as follows:
Lower Bardsdall Sand (11' Potential Oil Pay): The top of this 11' thick sand was encountered at 3420' drill depth (-3216' Subsea) in the "Garcia" #3 well, 8' structurally high to the zone in the Progas "Garcia" #2 well approximately 1200' to the north which is currently producing 10 bopd. The Lower Bardsdall sand has a good Rwa response on the electric log and 6 cores taken in it analyzed oil with permeability's from 29-107 millidarcies and porosities ranging from 24.1%-27.9%. Unlike the Laughlin and Bardo sands, the Lower Bardsdall has the characteristics of a blanket-sand deposition or at least a much larger sand lens then found in those sands. It is estimated that this sand will have an initial flow rate in the range of 25-35 bopd because of its distance from the "Garcia" #2 well.
Fair-Woodward Sand: The top of this sand was encountered at 3457' drill depth in the "Garcia" #3. A core taken at 3462' analyzed water suggesting that this is a separate sand body or lens from the same sand in the "Garcia" #2 well which analyzed gas. (See note above).
Bardo Sand (3' Potential Gas Pay; 13' Potential Oil Pay): The top of this sand was encountered at 3520' drill depth in the "Garcia" #3 well where it is present in the form of 2 lobes. The top lobe is 10' thick and has very good Rwa log response. A core in the top of this zone at 3522' analyzed gas. A core at 3523' was transitional between gas and oil and the remaining cores in this lobe analyzed oil. The permeability's in this lobe analyzed between 51 and 115 millidarcies and the porosities ranged between 25.8%-27.8%. The second lobe is 6' thick and shows good Rwa response on the triple-combo log. Cores in this zone analyzed oil with permeability's ranging from 140-265 millidarcies and porosities from 28.8%-30%.
As discussed above, the fact that the top of the Bardo sand in the "Garcia" #2 well is 28' structurally lower than in the "Garcia" #3 where it analyzed gas on cores with no oil indicates that these must be separate reservoirs or sand lens. The same is true for the "Guerra" #2 well which has an oil/water contact that is higher than could be possible in the "Garcia" #3 well. This means that we are dealing with a distinct separate sand body in the Bardo in the "Garcia" #3 well which appears to be oil productive. Because these sands are separate, it is impossible to estimate their sizes without further drilling.
The Bardo sand is oil and gas productive in the Premont Northwest field with the closest production being over 1 mile to the southeast in the Laughlin "Felipe Hinojosa" #3 well where it produced 9331 barrels of oil, and was abandoned in favor of gas production at that time and never was produced again. The Hinojosa #4 well, drilled by the previous operator was tested by Progas through a re-entry and tested 9 bophr through a ¼" choke and then flowed through a 1/16" choke for a number of months before a completion attempt failed due to casing failure. On the Seeligson Ranch approximately 2.5 miles to the southeast of the "Garcia" #2 well, the Bardo sand was a primary producing zone giving up 248,934 barrels of oil in the Mobil "Seeligson" #6 well alone. This trapping mechanism on this sand is probably a combination of structure and stratigraphic pinch out of intervals within individual sand bodies. It is suggested that this zone be tested first in this well as it could be a very prolific oil producer, possibly flowing oil for some time before it needs to be put on pump.
Caddo Sand (4' Potential Gas Pay and 5' Potential Oil Pay): The top of the Caddo sand was encountered at 3596' drill depth in the "Garcia" #3 well. The top 9' of this zone exhibits good Rwa response on the electric log and cores taken in this sand analyzed gas in the top 4' and oil for the next 5'. Permeability's in the cores in the top 9' of the Caddo sand ranged from 33-165 millidarcies while porosities ranged from 24.9%-28.4%. This zone will likely be oil productive.
The bottom lobe of the Caddo is 11' thick with excellent Rwa log response. A core was taken in this lobe at 3650' analyzed gas with 49 millidarcies of permeability and 25.3% porosity. 2 cores in the top of this zone the "Garcia" #2 well analyzed gas with lower cores in this zone analyzing water suggesting the possibility that commercial gas could be produced from this lobe of the sand in the structurally higher "Garcia" #3 well. This zone should be tested before the well is abandoned
The top of the Caddo sand is primarily oil productive in the Premont Northwest field. The closest productive well from the Caddo sand is the Kibbe "Engleking" #2A well over a mile to the south. This well produced 3709 barrels of oil from the Caddo sand. This zone could potentially produce between 5000-20,000 bo in the "Garcia" #3 well."
The previous excerpts have been provided from an analysis report provided to the company by Geologist, Patrick Robinson.
The completion process can take several weeks before reliable production numbers can be disseminated.
The company will provide progress updates as they become available regarding the Garcia #3 and other anticipated drilling activity in the near future.
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SOURCE Grid Petroleum Corp.