Mr. David Sidoo, President and CEO of East West Petroleum Corp. (East West), is pleased to announce the successful drilling and casing of the Cheal-D1 exploration well, located near the northern portion of East West’s 30% working interest in the Cheal East permit (PEP 54877) in the Taranaki Basin of New Zealand.
TAG Oil, the operator, drilled and completed the Cheal-D1 well approximately five days ahead of schedule and $750k under budget to a total measured depth of 2,400 m. The Company perforated an 18 metre section of high quality gas and condensate bearing sands (20-25% porosity on logs) in the Urenui formation and is currently being flow tested with no water production observed. The Company, following the flow test, will combine the well drilling and initial test data into its geological model and look at its options to commercialize the Cheal-D1 well.
In addition to the Urenui formation, the well also encountered two intervals of deeper Mt. Messenger Sands that look interesting on the logs. Further testing work will be undertaken in the future to investigate the potential of these sands as well.
David Sidoo, CEO commented, “I want to thank our operator for doing a good job drilling this successful well ahead of schedule and significantly under budget. Our two wells drilled this year were back to back successes and this Cheal-D1 well also brings a potential new discovery on our Cheal East permit. We look forward to also seeing results from our waterflood program announced earlier in the year and we expect to see an increase in BOE production by the end of the year.”