Crown Point Energy Inc. announced the test results of the Vega del Sol x-1 and Vega del Sol x-3 recompletion programs at its 100% working interest Cerro de Los Leones (“CLL”) concession located in the Neuquén Basin, Argentina.
The Company commenced operations to re-enter and re-test the Vega del Sol x-1 and Vega del Sol x-3 wells in the CLL concession in November 2015. The Company’s objective was to re-enter and recomplete the oil bearing Chachao formation encountered in the Vega del Sol x-1 well, and to perforate and test up to three intervals within the Neuquén Group penetrated by the Vega del Sol x-3 well, for which well logs and sample descriptions indicate the potential for bypassed oil and gas pay. The Vega del Sol x-1 well was drilled by YPF in 1995 and during an extended production test flowed clean oil from a fractured intrusive in the Chachao formation. The Vega del Sol x-3 well was also drilled by YPF in 2002 and Crown Point pursued the oil targets in a 3-D seismically defined structural trap in the Neuquén group. This well was successfully production tested by YPF for gas in the Neuquén formation and swab testing indicated the presence of oil. Crown Point believes that the fractured intrusive in respect of Vega del Sol x-1 and the Neuquén group in respect of Vega del Sol x-3 are important oil reservoirs in CLL and in the Mendoza portion of the Neuquén basin.
Vega del Sol x-1
On December 9, 2015, Crown Point began operations to re-enter and retest the fractured igneous sill in the Chachao formation. The well was re-entered and the company drilled out the abandonment plugs and placed the well on swab test on December 12, 2015 for 3 days during which time a total of 145.8 barrels of oil and 497.6 barrels of treatment water were recovered. The low salinity of the recovered water indicated that it was treatment fluid lost during the re-entry operation and from YPF’s abandonment of the well. Oil cuts increased from zero at the beginning of swabbing operations to 98% when the well was shut in for buildup. Recoveries at the end of the 3 day swab test were comprised of oil with little or no water being recorded. The stabilized flow rate during swabbing operations was 8.9 barrels of oil per hour or 214.5 barrels of oil per day (25°API).
The well has been shut in as a potential oil discovery and the Company intends to place it on production during Q1 2016 as soon as well site production facilities have been installed.
Vega del Sol x-3
Vega del Sol x-3 was drilled and cased to a total depth of 1,230 metres in 2002 by YPF, and subsequently completed and flow tested gas from two shallow Neuquén Group sandstones before being abandoned in that year.
On November 23, 2015, Crown Point began operations to re-enter and test additional zones within the Neuquén Group where log analysis indicated by-passed hydrocarbon potential. Three additional sand zones were perforated between 711 and 836 metres and tested individually. Based on the results of the initial testing, all three zones were subsequently individually treated with a 60 ton nitrified fracture stimulation. The well was then placed on an 81 hour production test with all zones co-mingled. During the test period the well flowed gas, oil and water at restricted gross rates of 0.63 mmcf of gas per day through a 14mm choke with a flowing well head pressure of 88 psi and liquids at an average gross rate of 10 barrels per day of oil and 18 barrels per day of treatment fluid and formation water. Total gross production during the 81 hour test was 1.75 mmcf of gas and 90 barrels of liquids comprised of 35% oil and 65% treatment fluid and water at an average flowing pressure of 88 psi.
The test was conducted through a separator between December 9-12, 2015.The well has been suspended as a potential oil and gas discovery and may be placed on production during 2016 when well site production facilities have been installed.
A successful long term production test in either or both of the wells could be indicative of additional drilling locations on the Vega del Sol structure.
