Two wells are expected to be drilled; GSO Peltier #1 is targeting predominantly gas reserves and GSO Peltier #2 is targeting predominantly oil reserves. This is the third development project between New Sage and Gulf South Operators of New Orleans, Louisiana.
Estimated project costs, for a completed well test, are $2.5m for GSO Peltier #1 and $2.2m for GSO Peltier #2 and New Sage has taken a 10% working interest in the wells and the project.
The GSO Peltier #1 well will test acreage up-dip of the Peltier #16 well, which was drilled in 1965 and produced 9.9bcf through 1974. The primary objectives for this well are four sands, V, W, X and Y, between the depths of 9300′ and 9900′. Recoverable reserves from any one of these sands are anticipated to be economic.
The planned recompletion with multiple objectives enhances the economic value of this prospect. The V, W, X and Y sands logged in the Peltier #16 had over 90ft of gas pay with no water levels. Secondary objectives exist within the shallowest V sand interval, as additional reservoir candidates have been observed in nearby wells.
The GSO Peltier #2 well will capture reserves in a zone partially produced by the Amoco Peltier #2 and #4 wells. Additional oil reserves are anticipated up-dip of the Amoco Peltier #2 well. In addition, as much as 50′ of unproduced Tex W pay sand (a separate potential pay zone) will be tested by GSO Peltier #2.
The Tex W interval consists of four sands, including the R, S, T and U sands. Amoco Peltier # 4 produced oil from the lowermost U sand, and potential bypassed reserves exist in this sand. The P sand appears to be productive on the log in the down-dip Amoco Peltier #2 well, which was not produced. The M sand is a highly productive field pay sand that will also be evaluated by GSO Peltier #2.
GSO Peltier #1 is targeting oil and gas reserves in four distinct sands for a total of 5.6bcf of gas and 17,000bbls oil (950,000 BOE @ 6 mcf:1 bbl). GSO Peltier #2 is targeting oil reserves in four distinct sands for a total of 430,000bbls oil.
John Carlesso, president and CEO of New Sage, said: “Our technical team conducted extensive due diligence, on dozens of prospects, over the last four months. The targets at the Valentine project have geographical and geotechnical characteristics which align extremely well with our development objectives and business model.”
