As part of the test program currently being performed on the PAP1 ST#3 well, a swabbing exercise will take place to establish inflow rates from reservoir to the well. The inflow rate will give an indication of the continuous flow rate that can be expected from the well, prior to foam/acid frac.

In addition, it will also add to the understanding concerning well performance, which will provide input into the design of the foam/acid frac program. The swabbing exercise is the final part of the test program.

The swabbing process alone may enable the well to flow continuously; although the production rate is unlikely to be as high as post acid/frac. On current operational costs and WTI prices, even a continuous production rate as low as 60 barrels per day would make the well economical.

DLMC has identified a swabbing unit suitable for performing the exercise, and are currently in discussions to mobilize the swabbing unit to site over the coming weeks. The swabbing unit contractor has confirmed they would supply the needed personnel to operate the unit. Costs associated with the entire swabbing exercise will be borne by DLMC.

The foam/acid frac program will commence following the end of the test program. DLMC has informed the company that it has already identified a suitable contractor and coiled tubing unit (CTU) for foam/acid fraccing the well.

The company added that in carbonate reservoirs such as GHS, it is common that wells need to be stimulated using various fraccing techniques. Tests on the well to date have confirmed that the wellbore pressure declines when the well is flowed, but recovers when the well is shut-in.

This indicates that the well can produce on an interval basis, and significantly, that the wellbore is in contact with a large volume of oil, but that connectivity is poor. Therefore, if the connectivity between the wellbore and reservoir can be improved, the well will produce at commercial rates on a sustainable basis. The intention is to achieve this by performing a foam/acid frac using a CTU.

An acid frac could make the well flow economically without the need to continuously swab the well, it may also increase the continuous production rate that is achieved by swabbing alone. The contractor that DLMC has identified for the foam/acid frac has indicated that significant enhancement in flow rates can be achieved using the technique, the company claimed.

Prior to the acid/frac, the CTU will be used to run a suite of electrical logs in the well, which will give a better insight into reservoir characteristics such as porosity and permeability data. These logs will be used for geological and petro-physical analysis, to estimate the In Place Volume (IPV) with a much higher level of certainty.