- Eon NRG (E2E) has dropped 33.3 per cent after the Govt Kaehne #9-29 well was not what it was expecting
- Swab testing of the Dakota Formation indicates a low permeability reservoir
- The company is in the process of carrying out a full geological review to better understand the Dakota reservoir
- On market close, Eon is down 33.3 per cent and is trading at 0.4¢ apiece
Eon NRG (E2E) dropped as much as 33.3 per cent today after it provided an update on the completion of the Govt Kaehne #9-29 well.
Mud and wireline logs were performed during and after the drilling phase. The drilling phase showed a hydrocarbon-bearing reservoir, which contained economic quantities of producible oil.
Five and a half inches of production casing was run and cemented in preparation for the well completion.
A completion rig was mobilised to site in December and cement bond logs were run to evaluate the integrity of the cement behind the production casing.
The primary target, Dakota Formation, was perforated with 4 shot’s per foot across three intervals between 6332 and 6345 feet.
Dakota Formation pay had been anticipated between 6279 and 6328 feet when the well was planned.
Eon says that the post drilling geological review has shown that the Dakota Formation was approximately 10 feet lower than anticipated.
“The results of the completion of the Dakota Formation in this well are somewhat disappointing,” Managing Director John Whisler said.
After the initial swab tests showed limited inflow, the perforated zones were acid stimulated with hydrochloric acid and surfactant to remove any near-wellbore damage created by cement or mud invasion.
The acid and surfactant fluid has been recovered by swabbing with the swab test showing the reservoir has low permeability due to interbedded silts and sands, which limits the inflow of fluids.
The analysis of the Muddy formation shows 7 feet of net pay from 6075 feet with pay that exceeds 20 per cent porosity and 20 ohms of resistivity.
“We remain optimistic regarding the potential production from the Muddy Formation based on analogues within the field that have experienced good EUR’s with very low decline rates from wells that have displayed similar log characteristics and no water production,” John said.
“We have been able to bring the drilling of this well in under budget and still on track with the completion budget,” he added.
The company is in the process of carrying out a full geological review to better understand the Dakota reservoir.
On market close, Eon is down 33.3 per cent and is trading at 0.4¢ apiece.