Page 16 - Sun Resources Annual Report 2013

The T. Keeling #1H, was drilled immediately after the Seale
#1 vertical pilot hole to target up to 7,500 feet of horizontal
well section (lateral) in the Woodbine Formation. The lateral
was drilled in a northerly trajectory to maximise the length
of the lateral while remaining within the boundaries of the
lease. On 24 January 2013, Sun announced the T. Keeling
#1H horizontal well had been drilled and cased to a depth
of 14,400 feet, delivering almost 6,400 feet of lateral in the
Lower Woodbine Formation. Excellent oil and gas shows
were observed while drilling along the length of the lateral and
these strong oil shows were supported by ‘thru-bit’ logging
of the lateral by the Operator, Amerril, after drilling was
completed. Subsequent to the end of the current reporting
period, Amerril successfully completed a planned 5-stage
fraccing operation across approximately 1,500 feet of the
toe of the T. Keeling #1H horizontal well, with a period of flow
back to recover fraccing fluids now underway. These first
5 stages of the T.Keeling #1H horizontal well had between
3 to 5 clusters of perforations per frac stage and a frac fluid
and proppant pumping program that is similar to those used
in successful Lower Woodbine wells completed nearby,
currently considered best practice. An additional 5,500 feet of
the lateral remains available for fraccing at a future time (up to
18 stages possible) and may be undertaken after the testing
of the first 5 stages has been completed and evaluated.
The specialist frac contractor that was contracted by the
Operator to execute the frac program is Fractec, which is the
same contractor that is currently used by EOG on its nearby
Lower Woodbine horizontal wells.
The rig was ‘skidded’ a few meters from the T. Keeling #1H
well location to permit spudding of the Seale #1H horizontal
well location on 19 January 2013. This is the third well in
the proposed multi-well drilling campaign, with Seale #1H
targeting up to 6,000 feet of horizontal well section (lateral)
in the Woodbine Formation. The lateral well was drilled in a
southerly trajectory to maximise the length of the lateral while
remaining within the boundaries of the lease. The Seale #1H
lateral was completed, after having to sidetrack around the
original well bore, to a depth of 15,277 feet MD, delivering a
lateral of approximately 7,100 feet. The Seale #1H well was
the first well to be fracced in the Amerril Oil Project area due
to the quality of the oil shows in this section of the Lower
Woodbine Formation.
During the second quarter of 2013, the Operator, Amerril
Energy LLC (‘Amerril’), completed approximately four
weeks of flow back operations at Seale #1H after the
successful 23-stage frac operation. The flow back
operations incorporated only 7 stages of the multi-stage
frac near the heel of the well after the shaft of the drill bit
drilling out the plugs sheared off and left the drill bit in the
hole. The Seale #1H horizontal well had been flowed back
for approximately 26 days, including a period of natural
flow to reduce well bore pressure, followed by a further
period of flow back after the installation of a down-hole
jet pump. The oil cut varied but peaked at about 8 bbls
of oil per hour on an intermittent basis (this varying oil cut
is thought to be caused by some frac water passing the
fish in the hole as a pressure differential builds up during
flow back). The flow rate had increased with the recent
installation of a jet pump and the total amount of frac
fluid recovered to date is ~9% of that pumped into the
formation during the fraccing process. However, more
recently the flow rates have reduced again, for reasons
thought to be related to the broken drill bit still lodged
down hole. Both the T. Keeling #1H and Seale #1H were
completed above their intended landing zone unfortunately
due to hole stability issues.
The Operator subsequently re-entered the Seale #1H well
during July 2013 to attempt to remove the broken drill bit
and plug debris obstructing the well-bore below the first
7 frac stages. This effort was suspended in mid-July to
allow for the 5-stage fraccing operation to begin on the T.
Keeling #1H well. Further attempts to recover the fish will
be considered after fraccing operations are complete at
T. Keeling #1H. If the fishing operation is successful, the
remaining frac plugs can be drilled out and the full well
flowed back to remove frac water and allow oil production
across all 23 frac stages.
Figure 3: Location of SW Leona and Normangee Oil Project areas (Lower
Woodbine targets), with pad drilling site highlighted in SW Leona Area.
Seale #1 T. Keeling
#1H & Seale #1H
surface locations
REVIEW OF ACTIVITIES
SUN RESOURCES ANNUAL REPORT 2013 14