As soon as swab rates have established the potential of the well through acidization of the formation, the company and operator will decide whether fracture simulation (frac) is required, or to put the well on pump in order to commence oil production and continue monitoring progress as the well stabilizes, the company said.
Given that the No 1 well returned rates in the 75bpd – 85bpd rates on simple acidization alone, the company and operator believe that a similar technique may prove to be the cost effective approach offering a direct path to ROI and payback by establishing immediate production at the No 3 Well and to elect the frac option at a later date if required.
In Kansas, it was earlier reported that the #3 Lutters well has commenced production as the second commercial oil well at the Poston Project. The well began producing oil over the weekend.
The company claims that the engineers have calculated from pressure data and pay zone thickness that the well should stabilize in the 80bpd to 100bpd range and that the lease should shortly be producing over 110bpd.
The Lutters #1 and #3 wells are drilled in a Mississippi Dolomite formation identified by a 3D seismic high which pinpoints the oil bearing horizon. The 750 acre location offers two additional wells as offset drilling opportunities given the success of the #3 well.
