Mira Resources Corp. ("Mira") and its wholly owned subsidiary Equinox TSB Development (Nigeria) Limited announce that they have successfully completed the acquisition of new modern cased-hole logs in TSB-1. Mira will immediately commence production testing of the first zone which had previously sampled high quality, low-GOR oil, at Tom Shot Bank Field ("TSB Field").
The first test will be in the U7 reservoir, which based on the newly acquired logs is believed to be substantially thicker than previously interpreted. Based on the new interpretation, the U7 is an apparent 246-foot gross oil-bearing reservoir from an interval of 6,534 to 6,780 feet measured depth.
Thomas Cavanagh, President Mira Resources, stated, "After several months of delays, due to the rig's delayed arrival, we are pleased to announce that we have successfully re-entered and acquired all the planned new logs in the Tom Shot Bank 1 well. We have confirmation that the well is in excellent condition and we have had no problems in acquiring the new logs.
We are now initiating the critical phase of production testing and intend to test multiple reservoirs that were previously identified by Shell as hydrocarbon bearing. Initial interpretation of the cased-hole logs implies that the U7 contains 246 gross feet of hydrocarbon bearing reservoirs. In order to maximize our understanding of the production potential of this reservoir, we will commence with testing the lower portion of the U7 across a 130-foot interval, followed by the upper zone across a 60-foot interval. The 2010 NSAI Resources Assessment of Tom Shot Bank 1 that were used for filing Mira's 51-101 Report used a gross interval of 60 feet in the U7 to generate the contingent resources. We are very encouraged that the new logs suggest the U7 is substantially thicker.
In addition to the U7, we have interpreted an additional 90 gross feet of hydrocarbon bearing reservoirs in the U8 from which Shell sampled oil in 1980. The U8 was not included in Mira's 51-101 Report. Mira has decided not to test the U8 reservoir in this well due to it being behind two separate casing strings, which Schlumberger advised would be very challenging to successfully perforate. Both the U8 and the U9 reservoirs were wire-line tested as oil bearing by Shell in 1980. The U8 and U9 reservoirs will be assessed in detail and tested when Mira drills TSB-3.
The U9 reservoir was evaluated and also shows significantly increased reservoir thickness and much better porosity than initially believed. The U9 is believed to be made up of highly laminated sands. The cased-hole log evaluation of this interval was inconclusive regarding the reservoir fluid, even though Shell sampled oil in this reservoir in 1980. Mira has elected to defer the test in this reservoir until Mira drills TSB-3, as open-hole logs will conclusively determine the reservoir fluid and composition.
In addition, Mira has also determined a deeper reservoir, the U9.5, to have a 175-foot gross reservoir interval with a similar log response to the U9. Mira will be able to conclusively evaluate both the U9 and U9.5 when Mira drills TSB-3. Mira has not yet received the final processed logs of the U4 reservoir but anticipate Schlumberger to provide these imminently. The results to-date of the re-evaluation have exceeded our expectations and we hope to confirm the results of the U7 test during the course of next week."