SOURCE: Target Energy Limited

Target Energy Limited

February 19, 2014 11:27 ET

Target Energy Limited Announces Initial Sydney #2 Production Rate Reaches 316 BOEPD

WEST PERTH, AUSTRALIA--(Marketwired - Feb 19, 2014) -  US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to provide an operations update on its Fairway Project in West Texas.

  • Sydney #2 is presently flowing at 316 BOEPD (270 BOPD with 277 mfcgd) from the Fusselman Formation ‐- which is at the high‐end of the Company's initial flow rate expectations.

    As announced on 10 December 2013 the Fusselman intersected at Sydney #2 is substantially thicker and more porous than Sydney #1, which has been Target's most successful Fusselman well to date.
  • At Wagga Wagga #1, the completion and testing program remains underway. Current testing in the Devonian section at a depth of approximately 2,850m has recovered oil while swabbing the well, with a single‐stage fracture stimulation of the zone scheduled for the end of the week to enhance the ability of this section to flow. Target is also progressing plans to proceed with a more extensive frac interval that would be additional to any production from the Devonian.

Managing Director, Laurence Roe commented on the operations: "We are very pleased with the initial production at Sydney #2. We have a very good Fusselman section in this well and are confident this will translate into a very good oil producer. Now that we have shut off some of the associated water flow, the well is living up to expectations.

"Additionally, at Wagga Wagga #1 the presence of oil shows in the Devonian section is very encouraging -- the planned single‐stage fracture stimulation should materially improve the ability of this section to flow oil."

Laurence Roe
Managing Director

NOTE: In accordance with ASX Listing Rules, any hydrocarbon reserves and/or drilling update information in this report has been reviewed and signed off by Mr. Laurence Roe, B.Sc, Managing Director of Target Energy, who is a member of the Society of Exploration Geophysicists and has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears.

 
Well Reporting Summary
Name and Type of Well   Sydney #2, Step Out/Appraisal (Oil)
Well Location   Glasscock Co, Texas
Permit   NW/4 & E/2 S 188 Block 29 A‐ 170 W&NW Survey
TEX Working Interest   60%
Geological Rock Type   Fusselman Carbonate
Depth of Zones Tested   3040m
Type of Tests Undertaken   Initial Production
Duration of Tests Undertaken   24 hours
Hydrocarbon Phases Recovered   270 Barrels of Oil (51%) + 277 mcf Gas
Other recovery   249 Barrels of Water (49%)
Choke Size Used   On Pump
Flow Rates   270 BOPD + 249 BWPD + 277 mcfgd (18 Feb 2014)
Number of Fracture Stimulations   Nil
Material Volumes of Non‐ Hydrocarbon Gases   Nil
     

Contact Information

  • Media Inquiries:
    USA
    Bradley Holmes
    Target Investor Relations (Houston)
    +1 713 304 6962 cell
    +1 713 654 4009 direct

    Laurence Roe
    Target Energy
    +1 713 275 9800 direct

    Australia
    Ross Dinsdale
    Business Development Manager (Perth)
    +61 429 702 970 cell
    +61 8 9476 9000 direct