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- Oil discovered in the Homeseeker B and shallow Borsum Sand
- Mireline logs identify oil in Homeseeker B sandstone at 8,935 feet
- Shallow oil discovery in the Borsum sand second, separate oil zone
- Upper Tweedle remains accessible and ready to be tested
Re-named Gulf Stream Energy (ASX: GSE) has drilled two oil discoveries at its Zydeco oil and gas project in Louisiana, USA.
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Wireline logs from the Zydeco-1 sidetrack have identified oil in two separate sandstone zones: the Homeseeker B at 8,935 feet TVD and the shallow Borsum Sand at 3,364 feet TVD.
The well has also been cased to a point approximately 378 feet above the Tweedle, an undrilled target prospective for gas and condensate, so the Upper Tweedle remains accessible from this wellbore.
“This is an exciting result for Gulf Stream. Zydeco-1 has found oil in two separate zones – the Homeseeker B, a primary objective of the well, and the shallow Borsum Sand,” MD, Joseph Graham, said.
“The team delivered a technically difficult well safely with no reported HSE issues. Importantly, the heavy-wall 7-inch casing is now set about 378 feet above the Tweedle, so that target is still within reach from this wellbore.
“Our focus now is to evaluate the two oil discoveries and, in parallel, consider the best way to test the Upper Tweedle.”
No flow test or fluid sample has yet been obtained from either zone; the discoveries are based on log interpretation.
In late September, long-term Australian oil and gas explorer Galilee Energy (ASX: GLL) changed its name to Gulf Stream Energy following shareholder approval at the general meeting.
The new name reflects the company’s focus on building a US Gulf Coast oil and gas business, including advancing the Zydeco project and evaluating further opportunities across the region.
Taken together, the two oil discoveries plus a preserved path to the Upper Tweedle mark a significant milestone for Gulf Stream’s Zydeco project and give the company a clear focus for the next phase of work Mr Graham said.
Gulf Stream’s attention now turns to evaluating the two oil discoveries in the Homeseeker B and the Borsum Sand.
Additional work is required to assess both zones and establish their potential for commercial recovery.
GSE was steady at 0.3¢.
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