The 2200m test is a follow-up to the 2008 discovery of an approximately 500m thick oil-bearing section in the Green Point shale formation in the 2K-39 well.
While drilling this section with an overbalanced drilling fluid column, this formation produced approximately 54 barrels of oil into the well bore, indicating that the Green Point shale formation is capable of producing even without being subjected to the stimulation techniques which are usual in shale reservoirs.
The 2K-39 well was not designed for evaluation of the Green Point shale unit and due to hole conditions, it was impossible to run a full suite of open-hole logs or to test the prospective section.
The new well, designated 3K-39, on the other hand, will twin the discovery well through the Green Point section and is specifically designed for its evaluation.
Data acquisition will include well cuttings, cores, open hole logs and well tests. Depending on results, the well may be stimulated by hydraulic fracturing (fracing) and completed for future production.
Financing of the project has been accomplished through a farmout by CIVC and SPE of a portion of their interests in the Shallow Rights in EL1070 to Dragon Lance Management Corporation (DLMC) of Nisku, Alberta.
Drilling operations will be managed by DLMC.
