CALGARY, Alberta, September 18, 2013 /PRNewswire/ --
Caracal Energy Inc. ("Caracal Energy" or the "Company") announces an operational update summarizing current exploration and development activities in Chad.
Krim-1 Exploration Well
- Structural closure southwest of the Mangara field
- Good porosity and good shows identified over 85 metres so far
- Maximum natural flow rate of 2,580 barrels oil per day ("bopd") recorded during testing. It is estimated that with an electric submersible pump ("ESP") in the well a stable production rate of 3,000 - 4,500 bopd is achievable
Mangara Drilling Update
- Successful testing of the Cretaceous E sands in the Mangara eastern lobe
- Maximum natural flow rate of 1,917 bopd recorded during testing. It is estimated that with an ESP in the well a stable production rate of 1,500 - 2,500 bopd is achievable
- Pre-drill un-risked Prospective Resource estimate of 25 MMbbls and 58 MMbbls on a Pmean and P10 basis, respectively by the Company's third party reserves evaluator, McDaniel & Associates ("McDaniel")
- Further E sands potential exists in the Mangara western lobe
Rig Contract Award
- The Company is in the process of contracting an additional 4 to 6 drilling rigs and 2 to 4 service rigs
- Rig arrival is scheduled to commence in Q1 2014
Seismic Program Tenders
- Evaluation of tenders underway for a multi-year 2D and 3D seismic programme across the Caracal acreage
Krim Exploration Drilling Update
The Company's first exploration well, Krim-1, has been drilled to 2,630 metres and cased across the C and D sand horizons. Drilling results indicate approximately 50 metres of good porosity intervals with good oil shows in the Cretaceous C and D sands. Cased hole wireline logs across the Cretaceous C and D sands are currently being processed and analysed.
An open hole drill stem test ("OHDST") has been completed over approximately 35 metres of gross E sands drilled to date achieving a maximum natural flow rate of 2,580 bopd at a flowing wellhead pressure of 120 psi. The well flowed for a total duration of 31 hours. Field sampling suggests oil gravity of 34 - 37 degrees API and a producing gas-oil ratio of approximately 100 standard cubic feet per stock tank barrel ("scf/stb"). Based on surface pressure data, no pressure or production decline was observed.
The productivity index for the zone is 2.6 - 3.2 bopd/psi. It is estimated that with an ESP in the well a stable production rate of 3,000 - 4,500 bopd is achievable. Further testing is planned on this section with potential for further E sands to be encountered and tested as drilling continues to a total depth ("TD") estimated to be 3,332 metres.
The Mangara field and Krim prospect were included in the 147 km 3D seismic program acquired by the Company in 2012. For the Krim structure, the independent reserves and resources evaluation provided by McDaniel & Associates Ltd. (the "McDaniel Report") as at June 30, 2013 (as previously announced) booked for Krim unrisked Prospective Resources of 29 MMbbls and 64 MMbbls on an Pmean and P10 basis, respectively, for the C, D and E sands.
Mangara Drilling Update
The Company conducted extensive testing of the Cretaceous E sands in the Mangara-5 well since the publication of the McDaniel Report (which attributed relatively low reserves to Mangara E sands and which was prepared prior to drilling Mangara-5) This was the Company's first opportunity to comprehensively test the Cretaceous E sand.
The first cased hole test was over the interval 2,950 - 3,095 metres (29.5 metres of net perforations). The well was swabbed for 30 hours and confirmed 100% formation water as suggested by petrophysical interpretations.
The second cased hole test was from 2,474 - 2,669 metres (75 metres of net perforations). The initial 53 hours flow test resulted in a maximum natural flow rate in excess of 1,900 bopd with a 1" choke and a flowing wellhead pressure of 160 psi. Field estimates indicate crude quality of 35 - 39 degrees API, and a producing gas-oil ratio of 100 scf/stb. No formation water was observed for the duration of this test and based on surface pressure data, no pressure or production decline was observed.
The productivity index for the zone is 1.4 - 1.9 bopd/psi. It is estimated that with an ESP in the well, a stable production rate of 1,500 - 2,500 bopd is achievable. Further testing is on-going that will reduce the range of uncertainty on this well's potential.
For the E sands in the eastern lobe of the Mangara field, the McDaniel Report estimated un-risked Prospective Resources of 25 MMbbls and 58 MMbbls on a Pmean and P10 basis, respectively (based on a resource audit prior to drilling). In addition, approximately 1.5 MMbbls of 2P reserves are booked in the McDaniel Report for the eastern lobe of the field.
The Company anticipates testing the Cretaceous E sands in the western lobe of the Mangara Field, with the Mangara-6 well results due later this year. For the western lobe of the Mangara field, the McDaniel Report estimated (on a resource audit prior to drilling results), un-risked Prospective Resources of 15 MMbbls and 35 MMbbls on a Pmean and P10 basis, respectively. No reserves have been assigned in the western lobe of the Mangara field.
Badila Drilling Update
Rig 96 continues to drill the Badila-4 well. Some delays were encountered due to fishing operations to retrieve a stuck logging tool. The well has reached TD and penetrated the Cretaceous C, D and E sands. Further wireline logging is underway prior to running production casing and testing the well.
Rig 96 will move next to the Badila-5 well site, which is located immediately adjacent to Badila-1 and Badila-2. This is expected to occur during October 2013.
The access road and well site for the Bitanda exploration well, adjacent to the Badila field, are under construction. The Company anticipates spudding the Bitanda well after Badila-5.
Gary Guidry, Chief Executive Officer of Caracal Energy, said:
"We are very excited by the results of the Mangara-5 E sands testing. This has the potential to accelerate our development plans and production goals for Mangara. We have now confirmed the presence of oil over a gross column of 195 metres. We are also excited about the preliminary results and oil flow tests to date from our first exploration well at Krim."
Capital Markets Day
Caracal Energy is holding a Capital Markets Day for analysts and investors in London, today. Gary Guidry, Chief Executive Officer, and Trevor Peters, Chief Financial Officer will host the event, with presentations by a number of the operational management team.
A live webcast of the capital markets day will be available starting at 2.30pm (BST) on Wednesday 18th September 2013 for analysts and investors. To register:
International dial in: +44(0)20-3003-2666, Password: Capital Markets Day
The presentation slides will be posted and available for viewing on the Investors section of the Caracal Energy website (http://www.caracalenergy.com) on Thursday 19th September.
About Caracal Energy Inc.
Based in Canada, Caracal Energy Inc. is an international exploration and development company focused on oil and gas exploration, development and production activities in the Republic of Chad, Africa. In 2011, the Company entered into three production sharing contracts ("PSCs") from the government of the Republic of Chad. These PSCs provide exclusive rights to explore and develop reserves and resources over a combined area of 26,103 km in southern Chad. The PSCs cover two world-class oil basins with development opportunity, oil discoveries, and numerous exploration prospects.
Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "will", "should," "could," "project," 'likely", "anticipate," "aim," "target," "expects," "seeks" and similar expressions and words of similar meaning. These statements reflect the beliefs and expectations of the Company and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Information relating to reserves and resources is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. No representation is made that any of these statements or forward looking statements will come to pass or that any results will be achieved. Specific forward-looking statements included in this press release include comments related to the expected timing of drilling and facilities advancement; potential production rates; expected completion of well servicing operations; development of the fields described; expected results of the Krim prospect; and other matters. Subject to applicable securities laws, the Company and its directors, officers, employees or affiliates do not undertake any obligation to revise this forward-looking information, to correct any inaccuracies which may become apparent, to publicly announce the result of any updates or revisions to the statements made, and any opinions expressed in them are subject to change without notice. This cautionary statement expressly qualifies the forward-looking information and statements contained in this press release. Well-test results are not necessarily indicative of long-term performance or of ultimate recovery.
For further information:
Caracal Energy Inc.
Gary Guidry, President and Chief Executive Officer
Trevor Peters, Chief Financial Officer
Longview Communications - Canadian Media Enquiries
Alan Bayless +1-604-694-6035
Joel Shaffer +1-416-649-8006
FTI Consulting - UK Media Enquiries
Ben Brewerton / Ed Westropp / Georgia Mann
SOURCE Caracal Energy Inc