The Mountain Minerals #5 well was 100% funded by Nextraction. The project is under the field direction of Nextraction’s operating partner Vinland Energy. The well reached total depth of 2,521ft last week. Production casing was set to total depth in anticipation of completion activities.
The company invested approximately $170,000 to drill and set production casing, which is within the projected budget for the project. The company anticipates completion expenditures of approximately $120,000 to frac, complete and establish natural gas sales.
Gas shows, as defined by both electric log interpretation and visual observation, were evident in the secondary targets of the Big Lime, Knifely, Ft. Payne, and Waverly formations.
Nextraction’s primary target, the Devonian-age Chattanooga shale formation, was encountered from 2,323ft-2,408ft as expected. Nextraction has also reported that a naturally-occurring gas show, near the top of the Chattanooga shale, was observed.
Based on initial log review, the shale character of the Mountain Minerals #5 well is similar to the core data of the George Brown #3 well that was previously drilled and evaluated by TerraTek, a Schlumberger company, for shale gas properties.
The George Brown #3 well was cored in June 2009 with the purpose of evaluating the mechanical properties and reservoir quality of the Chattanooga shale. Third party consultants’ review of the Chattanooga reservoir rock properties within the area of interest in Whitley County, Kentucky and Campbell County, Tennessee, showed that the reservoir rock parameters and contained gas content appear favorable for shale gas development.
The company plans to conduct a complete evaluation of the log of the Mountain Minerals #5 well and design a multi-stage frac program, not only for the main target zone of the Chattanooga shale interval, but also for the additional gas bearing zones encountered in the secondary targets.
Fracing and completion of the well is anticipated to occur within the next eight weeks. A gas pipeline is located approximately 500ft from the wellhead, and initial flow rates will be produced directly into the gas sales pipeline.
In addition to the completion planning on the Mountain Minerals #5 well, Nextraction is currently planning a completion program for the recently drilled Noble 6-24 well on the Pinedale Anticline in Sublette County, Wyoming.
