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- GSE finalises contingent resource estimates for Zydeco-1 well
- Flow testing to assist in assessing well productivity and commercial recoverability
- Results will provide important data to support any future reserves assessment
- GSE planning to evaluate potential pathway towards full development
Gulf Stream Energy (ASX: GSE) has released contingent resource estimates for the Borsum Sand and Homeseeker B oil discoveries in the US as it establishes a pathway towards full development.
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The next key step is securing flow test results in order to derive Proved, Probable or Possible reserves which will determine if the oil discoveries are viable to fully develop.
“With the finalisation of the Contingent resources estimates for the Borsum Sand and Homeseeker B oil discoveries, we are much closer to determining if they are viable to fully develop,” MD, Joseph Graham, said.
“The oil discoveries have been a welcome development as the volumes are material and have potential to add value to the project overall. The board is fast tracking final steps to derive Proved, Probable or Possible reserves and will update the market in due course.”
The Borsum Sand has been estimated to contain up to 60,000 barrels gross while the Homeseeker B has been estimated to contain up to 50,000 barrels gross.
The Borsum Sand is a shallow oil zone at around 3,364 feet depth with 12 feet of net pay at 32% average porosity – high-quality reservoir at a depth where completion is simple and inexpensive.
Homeseeker B, the primary objective of the Zydeco-1 sidetrack, was intersected at approximately 8,935 feet with five feet of net pay at 24% average porosity.
Both sands are behind cemented seven-inch casing and can be completed from the existing wellbore without further drilling.
No formation pressure data, fluid samples, flow tests or production data from this well were available to the evaluato.
The interpretation is instead anchored by nearby wells that tested or produced from the same sands: MacCabees B-1 (Homeseeker B, 75 barrels of oil and 25 barrels of water per day, approximately 300 feet away) and, for the Borsum Sand, ABM 001 (107 barrels of oil per day) and F.N. Hayes 008 (66 barrels of oil per day, produced until 1987).
Mr Graham told shareholders the priority remains completing flow testing for Homeseeker B. A completion AFE has been pre-pared and work can be executed with a workover rig on the existing cased wellbore. The flow test and fluid samples will confirm producibility and provide the data needed to progress the resource towards reserves.
The Borsum Sand can be completed later from the same wellbore as a second, shallow production zone. No approved development plan or completion decision is yet in place; the Board expects to make the Homeseeker B completion decision shortly and will update the market when it does.
GSE was steady at 0.3¢ with a Mkt cap of $6.057M prior to markets opening.
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