PriceSensitive

Prominence Energy (ASX:PRM) signs contract to drill Bowsprit-1 in US

Energy
ASX:PRM      MCAP $1.366M
21 July 2021 04:00 (AEST)
Managing Director, Peter McGrath

Prominence Energy (PRM) has contracted Parker Drilling to drill the Bowsprit-1 well in the US state of Louisiana.

Work by drill rig 55B is expected to kick off on August 15 following drilling at two additional wells by other operators.

The project will be managed by Lafayette-based Completion Specialists International, including associated activities such as engineering pre-planning, invoicing and accounts payable, completion design and job oversight.

In this way, PRM said it could confidently execute the well despite travel restrictions preventing movements between Australia and the United States.

Accordingly, the well is expected to take around 10 to 12 days to drill at a cost of roughly US$2 million (A$2.73 million) without disruptions.

Following additional planning and geoscience work, the company has reportedly increased the well’s depth from an initial 8000 feet to 8600 feet to drill two deeper sands that might be prospective for hydrocarbons.

Overall, Bowsprit-1 is forecast to penetrate six prospective reservoir sands, with the principal target being the T2 Middle Miocene Sand, which lies up-dip from proven oil in T1.

The remaining five sands are situated at depths of between 6500 and 8400 feet as part of established reservoirs in the area.

PRM Managing Director Alex Parks said plans for drilling were progressing well, with the rig contract considered a significant milestone for the Bowsprit project.

“We are looking forward to the drilling in mid-August,” he said.

“Bowsprit-1 has six prospective horizons and any one of them could contain a commercial volume of oil.”

Prominence Energy shares closed at 1.3 cents on July 20, 2021.

Related News