The Almi # 8 well, operated by PetroQuest and located in the South Chauvin Field in Terrebonne Parish, Louisiana, reached contract depth of 12,624ft total vertical depth (TVD) in late July. The well encountered approximately 64ft (TVD) of net pay (Miocene sand) in two zones.
The company encountered 14ft of net pay in the lower BB2 target zone. The BB2 zone is expected to have an initial production rate of approximately 4,000-5,000mcfe per day.
In addition, approximately 50ft of net pay was encountered in the AA upper target zone, which is expected to be completed upon depletion of the BB2 zone. The company expects the initial production rate from the AA zone to be approximately 10,000-12,000mcfe per day.
USE participated for 53.3% of the drilling costs (50% after casing point), in order to earn a 36% net revenue interest in the prospect. The well is currently being completed and is expected to be producing gas and condensate for sale by mid August.
In June, the Weyerhaeuser 57 #2 (Olympic prospect), the second well drilled in partnership with Yuma in southern Louisiana, reached its target depth of 15,000ft and was deemed productive after two zones with an estimated 18 to 34ft of net pay were encountered.
The prospect is a Tuscaloosa sand completion and Yuma estimates that the prospect has a gross un-risked reserve potential of ~2-3mmbo. USE has an initial working interest of 4.8% (3.6 % net revenue interest) in the well.
In April 2010, the company unveiled a participation agreement with Houston Energy to acquire a 10% after casing point working interest in initial test wells in up to five prospect areas in the Permian Basin in west Texas.
