SOURCE: Target Energy Limited

Target Energy Limited

August 11, 2014 12:22 ET

Target Energy Limited Provides Update on Fairway Operations

WEST PERTH, AUSTRALIA--(Marketwired - Aug 11, 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 the Permian Basin, West Texas.

  • Drilling is now underway at BOA North #5 in Howard County (Table 1), in which Target has a 50% Working Interest ("WI"). The well will be drilled to a planned depth of 3,030m (9,942 ft) and will test both the Fusselman and Wolfberry targets.


  • Following BOA North #5, the rig will mobilise to the Taree #1 well in Glasscock County, in which Target has a 50% WI. The well lies approximately 2 km south east of the Ballarat 185 #1 well. The well will be drilled to a planned depth of 3,048m (10,000 ft) and will test both the Fusselman and Wolfberry targets.


  • Drilling at Bunbury #1 has been rescheduled to Q4 to accommodate delays in site building. The partners have agreed to move the proposed Darwin #4 well forward to replace Bunbury. Darwin #4 will be located just to the south of Darwin #1 (Fusselman production) in Howard County and will target both Fusselman and Wolfberry objectives. Drilling at Darwin #4 is expected to be underway in September. Target has a 50% WI in the Darwin lease.


  • Wagga Wagga #2 was put on pump on 1 August 2014 following fracture stimulation in July. Oil production at the well has continued to increase with last reported production of 110 BOPD with 195 BWPD. Approximately 12,500 barrels of load water are yet to be recovered (Table 2). Target has a 35% WI in the Wagga Wagga lease.


  • Homar #1 was put on pump on 5 August 2014 following fracture stimulation in July. In the first 3 days of production the well averaged 49 BOPD with 234 BWPD and (estimated) 150 mcfgd. Approximately 12,037 barrels of load water are yet to be recovered (Table 3). Target has a 50% WI in Homar #1.

  • Fracture stimulation at BOA North #4 is imminent with the work scheduled to commence in the week of 11 August 2014. Target has a 50% WI.

Managing Director, Laurence Roe commented: "Both Homar #1 and Wagga Wagga #2 are now on pump and initial flow rates look encouraging. With the stimulation of BOA North #4 planned for this week we expect to see these wells add to our production rates. Although, as we previously noted, it is taking longer to schedule fracture stimulation crews, we expect to get a crew to Ballarat 185 #1 in mid-September.

"In the meantime we will complete our drilling programs at BOA North #5 and Taree #1 -- the rig will then move off to drill one well in an adjacent area before returning to Darwin #4 in late September.

"The remainder of 2014 will be a busy period for Target and the Board remains confident the Company is on track to complete its 10 well drill program by the end of the year."

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 - BOA North #5
Name and Type of Well   BOA North #5, Oil Development Well
Well Location   Howard County, Texas
Lease Description   S12, Block 33 T-2S, A-1353, T&P RR Survey
TEX Working Interest   50%
Report Date   7:00 pm 8/08/14 (Western Aust Standard Time) /
6:00 am 8/08/14 (USA Central Daylight Time)
Current Depth:   1,388m. All reported depths are measured below the Rotary Table (RT) on the rig floor.
Progress   Spud well at 03:30 hrs on 30 Jul 2014. Drill ahead to 416.4m (1,366 ft); run and cement surface casing. Drill ahead to 1,388m (4,390 ft); prepare to run intermediate casing.
Table 1
 
 
Well Reporting Summary - Wagga Wagga #2
Name and Type of Well   Wagga Wagga #2, Oil Producer
Well Location   Glasscock Co, Texas
Lease   S221, Block 29, A-496; W&NW RR Co Survey, Glasscock Co
TEX Working Interest   35%
Geological Rock Type   Wolfberry - carbonates, shales and minor sandstone
Depth of Zones Tested   2,453m - 2,893m
Type of Tests Undertaken   On production
Duration of Tests Undertaken   Put on pump on 1 August 2014
Hydrocarbon Phases Recovered   Oil, Gas
Other recovery   11,048 Barrels of Load Water (total load now recovered: 47%)
Choke Size Used   On pump
Flow Rates   110 BOPD + 195 BWPD (7 August 2014)
58 BOPD + 226 BWPD (Average 1 - 7 August July 2014)
Number of Fracture Stimulations   7 zones stimulated
Material Volumes of Non-Hydrocarbon Gases   Nil
Table 2
 
 
Well Reporting Summary - Homar #1
Name and Type of Well   Homar #1, Oil & Gas Producer
Well Location   Howard Co, Texas
Lease   S24, Bl 35 A-1538; T&P RR Co Survey, Howard Co
TEX Working Interest   50%
Geological Rock Type   Wolfberry - carbonates, shales and minor sandstone
Depth of Zones Tested   2,832m -3,160m
Type of Tests Undertaken   On production
Duration of Tests Undertaken   Put on pump on 5 August 2014
Hydrocarbon Phases Recovered   Oil, Gas
Other recovery   12,037 Barrels of Load Water (total load now recovered: 69%)
Choke Size Used   On pump
Flow Rates   47 BOPD + 240 BWPD + est 150 mcfgd (7 August 2014)
49 BOPD + 234 BWPD (Average 5 - 7 August July 2014)
Number of Fracture Stimulations   7 zones stimulated
Material Volumes of Non-Hydrocarbon Gases   Nil
Table 3
 

Contact Information

  • CONTACT INFORMATION:

    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