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- Prominence Energy (PRM) has failed to find any commercial volumes of hydrocarbons in the Bowsprit-1 well in Louisiana
- The company started drilling the well earlier this month to evaluate six or seven prospective reservoirs, with the main target being the T2 formation
- Prominence will suspend the well at the cased hole depth of 3000 feet and plans to re-enter it following the northern hemisphere’s winter season
- The next round of drilling will target the proven oil-bearing T1 reserves which remains commercially significant and PRM intends to drill and put it on production next year
- Company shares are down 31.8 per cent to trade at 0.8 cents
Prominence Energy’s (PRM) shares have dropped after the company announced it hasn’t found any commercial volumes of hydrocarbons in the Bowsprit-1 well.
Bowsprit is a former producing field which contains 14 vertical well penetrations and demonstrated producible oil from the upper T1 formation.
The company began drilling the Louisiana-based well earlier this month to evaluate six or seven prospective reservoirs.
Prominence is primarily targeting the T2 Middle Miocene to a depth of about 8600 feet to appraise a potential field extension and upside in the T2 formation.
Unfortunately, the energy stock failed to find commercial volumes of hydrocarbons in the targeted vertical section.
The Bowsprit-1 well will now be suspended at the cased hole depth of about 3000 feet for future re-entry.
Managing Director Alex Parks said the results were disappointing.
“We are obviously disappointed with the Bowsprit-1 well result. We’re pleased to have given our shareholders exposure to a good prospect with a material upside, but it didn’t work out this time,” Mr Parks said.
“At the current oil prices, the T1 reserves are still commercially significant for the company, and we intend to drill that and put it on production next year.”
Prominence does plan to re-enter the well and will use the data from the vertical section to drill a horizontal section into the proven oil-bearing T1 formation.
Based on current information, a horizontal well drilled into T1 is independently estimated to have 2P reserves of 330,000 barrels of oil.
The company will re-enter the well following the northern hemisphere’s winter season.
Until then, PRM will use the data to select and permit an appropriate pipeline and tie-in negotiations.
Prominence Energy’s shares were down 31.8 per cent to trade at 0.8 cents at 11:40 am AEDT.
