Entek announced that the development of its GA A133 gas discovery, made in 2010, has been completed and gas is flowing at the planned 9.5 MMCFD on restriction. At current gas prices this should net Entek around US$250,000 per month. Entek has a 38% working interest in the block which is operated by Peregrine Oil & Gas II, LLC.
The GA A133 block has gross reserves of approximately 10 BCF associated with the recent discovery, with additional reserves linked to previous gas discovered on the block to be targeted at a later date.
Due to proximity to analogue production the GA A133 discovery well was not tested. This is common practice in the Gulf of Mexico where numerous existing producing analogues give a high level of confidence. The well is performing as predicted based on wireline log interpretation and correlation with offset analogue production.
For the same reason the Company did not flow test its recent oil discovery in VR 342. In this case analogue studies based on numerous existing producing analogues (performed independently on Entek’s request) suggest potential flow rates of 500-1000 BOPD with minimal decline for the first 3-4 years.
Development planning is currently underway for the VR 342 oil discovery based on the flow rates described above and the independently certified gross reserves of circa 7.5 MMBO (IP 2.5 MM BO; 2P 4.8 MMBO; 3P 7.5 MMBO) and 9.5 BCFG (IP 3.8 BCFG; 2P 6.3 BCFG; 3P 9.5 BCFG) or 9.1 MMBOE.
Additional wells are expected to be drilled in first half of 2012. First oil production is anticipated in Q3 2012. Entek has 50% working interest in the VR 342 block.
[mappress] Source: Entek, August 16, 2011;