SOURCE: Target Energy Limited
WEST PERTH, AUSTRALIA--(Marketwired - Jan 22, 2014) - US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to provide an update on its Fairway Project in West Texas.
Preliminary flow testing of the Fusselman section in Sydney #2 has yielded an oil flow rate of 75 BO in 19.5 hrs (equivalent to 92 BOPD). The oil was accompanied by a large amount of water (approx. 800 BW), which appears to be flowing from vertically extensive fractures. The well has been shut in following a polymer gel treatment to minimise the water flow, with flow testing set to resume on 25 January.
Wagga Wagga #1
Completion procedures at Wagga Wagga #1 will commence after the Sydney #2 program. Initial testing will be on the deeper Ellenburger and Fusselman/Devonian sections.
Target Managing Director Laurence Roe noted: "The testing at Sydney #2 has confirmed the presence of oil and of good reservoir conditions -- both of which we expected. Before we bring the well into full production however, we will deal with that associated water. The polymer treatment should block off a good deal of the water flow and thus allow us to increase the relative volume of oil. The well is shut in now to allow the gel to set and we will resume testing at the end of the week.
"We will go straight to the completion of Wagga Wagga #1 after Sydney #2."
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.