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- Black Mountain Energy’s (BME) appraisal well is set to become an oil-producing asset by September
- The company kicked off the early stages of fracking today
- Black Mountain Energy has acreage straddling the prolific Permian Basin oil and gas province in New Mexico, USA
- The company is testing the economic potential of its Half Moon prospect
- BME shares last traded at 2.3 cents
Black Mountain Energy (BME) has commenced fracking operations in New Mexico, overlying the prolific oil and gas province, the Permian Basin.
The company is targeting underground reservoirs believed to be present at the Half Moon prospect with appraisal well 64 FEE 2H the keystone asset allowing stimulation to begin.
Fracture stimulation is the process of generally horizontal drill bits blasting rocks underground with liquid water jets so as to free up desired molecules of oil and gas – also known as fracking.
Approximately 50 fracture stages will be placed along the drill bit underground and the company expects the asset to begin producing oil in the coming months. The first production from the well is expected in September.
The well reached a measured depth of 5,134 metres with a 3-kilometre-long horizontal section perforating what is believed to be a highly prospective interval of oil-bearing rock called Bone Spring.
Black Mountain expects the well to produce both oil and gas.
“We look forward to interpreting the fracture stimulation results on this first well and providing shareholders with milestone updates around the well’s performance,” BME COO Michael Laurent said.
BME shares last traded at 2.3 cents.
