Additionally, three horizontal laterals have been drilled and cased for future production testing. A fourth and fifth horizontal well are currently in progress. Oil shows have been encountered in all eight wells drilled to date. The total evaluation campaign has now been expanded and will consist of five vertical stratigraphic tests and up to seven associated horizontals.
Molopo holds an acreage position totalling 70.5 sections in the Bakken representing a gross 45,100 acres (net position 44,200 acres). Based on previous industry results each section (1 Section equals 640 acres) was estimated to hold some 3-6MMstb of oil-in-place at an average of 4MMstb. Molopo also risked its total acreage position at a 60% chance of success representing a target oil-in-place for the risked acreage of some 170MMstb gross. Recovery rates in the region vary, but typically range from 5%-15%, the company said.
Molopo previously indicated an initial work programme in the Manitoba Spearfish oil play comprising three recompletions, three vertical and three horizontal wells to explore the extent of the oil within its acreage position and demonstrate the ability to improve oil production rates. Drilling commenced in early January with the first vertical wells located within the greater Pierson acreage area. Five vertical wells have been drilled and logged.
Additionally, two horizontal laterals have been drilled and cased for future production testing and one existing horizontal has been recompleted. Oil shows have been encountered in all wells drilled to date.
The expanded programme will allow Molopo the option of testing production characteristics of the Spearfish in up to 14 wellbores with all production sold under Molopo Canada’s existing crude oil marketing arrangements. It is anticipated that initial flow test results will become available progressively in coming months, with most results expected in the second quarter of 2010.
