Empyrean Energy Updates On Sugarloaf Project In Texas
Published: 19-Nov-2009
Empyrean Energy Plc (Empyrean Energy) has provided an update on Sugarloaf project. The detailed planning for the fracture stimulation of each of the three horizontal wells has now been completed. The operator of the Sugarloaf project, Texas Crude Energy Inc, intends to carry out multi-staged fracture stimulations along the horizontal section of each of the Kennedy-1H, Kowalik-1H and Weston-1H wells.

Each stage will be individually hydraulically stimulated using a design that has proved effective elsewhere in the play, that stage is then isolated and the process repeated further up the liner. At Kowalik-1H, where it was not possible to recover the slotted liner, the slotted section will be stimulated with a single larger treatment and the conventional solid section of the liner will be treated in a similar fashion to the other two wells. Once treated, the wells will be brought on line to sales.

Each well has now been prepared with the production tubing being pulled at Kennedy -1H and Kowalik-1H. The horizontal liners of all three wells are presently being washed out and clean water left behind ahead of the stimulations.

At Weston-1H, production facilities are being installed, including a pipeline connection to the Kennedy-1H location to utilize the existing tie-in to a major export gas pipeline.

Progress to date and the availability of equipment indicates that the likely start of the fracture operations will be during December 2009. Each stimulation will take approximately 10 - 14 days. A further announcement will be made when these operations commence.

Following the successful farm-out to Hilcorp Energy, Empyrean Energy retains the following working interests (WI) in Block B wells:

Kennedy-1H - 9% WI, Kowalik-1H - 10.2% WI, Weston-1H 3% WI, Future Block B wells - 3% WI.

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Kowalik #1H Fracture Stimulation Program

Adelphi Energy Limited (Adelphi) provides the following update on the fracture stimulation operations at the Kowalik #1H well:
As previously reported the pumping operations commenced on 28 December 2009 (US CST)with the first stage comprising of four phases targeting the horizontal 3,800 ft of slotted liner.

After 22 hours of continuous pumping and during the fourth phase of the stimulation program an anomalous pressure drop was noted and operations were suspended to allow further investigation. At this point the first three phases had been successfully completed with over 80% of the planned fluids for this stage having been pumped with encouraging real time indicators of the stimulation.

Following the investigation the Operator has elected to run a tie back string of 5 casing from the top of the liner to surface. Thereafter an isolation plug, which has been set in the liner as part of the investigation, will be removed and the well flowed to surface.

The fracture equipment has demobilised and a rig is now moving on to location to carry out the abovementioned work. It is presently estimated that the Kowalik well will be flowed to production in 1-2 weeks.

First New Well Under Farmin Agreement

Preparations and planning is now underway for the first farmin well at Sugarloaf, the Easley#1H well, which will be located approximately 2km to the north east of the Weston #1H well.

As previously reported, this well is expected to be spudded during the month of January 2010.
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cyril

Fracc engineers thoughts on pressure drop.

They had an anomolous pressure drop during fracing : Probably the seal between the liner and the upper casing failed or fluid got past it somehow.

Tie back liner: to get round the above problem simply, and have a high pressure production string. (Note: they are expecting high pressure)

Isolation plug in liner: put in place so they can pressure test liner/casing seal to confirm problem.

Stimulation indicators: By observing the pressure changes during fraccing and the close-in pressures afterwards they can tell if the frac is succesful and the reservoir pressures are maintained etc.

All good IMHO apart from small problem with pressure drop easily fixed. Will take some while to clean up I expect, BUT they are expecting it to clean up and at some pressure, which can only mean one thing imho.

SP dropped 20&(ASX)before recovering.
cyril

Still some work to do but,

5.68 million cubic feet of gas/day and 415 b of condensate in total using conversion factor equals 10.65 million cubic feet of gas/day.
cyril

Sugarloaf well flowing gas, says Empyrean
Business Financial Newswire
The fracture stimulation of the Weston-1H well on the Sugarloaf project in Texas was successful and it is flowing gas and condensate to sales, Empyrean Energy said today (24 February).

Empyrean said it had been advised by the operator, Hilcorp Energy, that the average production rate over the first five days was 5.68 million cubic feet of gas per day and 414 barrels of condensate per day.
cyril