Prospects for Enegi projects look brighter
ENEGI Oil has gained confirmation that its most advanced well at Garden Hill South in Newfoundland can be flowed continuously at controlled rates without damaging its productivity.
The well, PaP#1-ST-#3, will now be flowed continuously for 14 days during its final workover before the firm embarks on a bullhead acid squeeze to guage pressure rates.
“We are very excited about the future as the workover continues to gather pace and our activities rapidly come to fruition,” said CEO Alan Minty. “Further updates will follow as we execute the programme.”
The Manchester-based firm also reported yesterday that development partner Shoal Point Energy, which is investigating shale gas resources in an enxploration licence area (EL1070) owned by the firm by the Newfoundland coast, is drilling a sidetrack to its existing well to determine the flow potential and reservoir characteristics at the base of the Green Point rock formation. It expects the programme to take 60 days to complete.
Mr Minty said: “The drilling of a sidetrack well is a significant undertaking, which clearly shows SPE’s belief in the Green Point shales.
“We are excited by the prospect a positive result from the sidetrack would have on us and we eagerly look forward to further announcements over the coming weeks.”
The company’s shares are currently trading 4% lower than at the start of the day at 15.25p.
