Otto Energy provides update on Mustang well

Petrophysical evaluation of wireline logging data together with mudlog hydrocarbon shows seen whilst drilling indicated the presence of a total net hydrocarbon filled sand interval of approximately 57 ft TVT (True Vertical Thickness). Wireline logging indicated some possible pay in a second zone that tied to a similar amplitude event. This petrophysical evaluation has been undertaken using historical parameters for production performance in the play trend. At the time of logging, wireline sidewall cores, which would have provided an indication of flow capacity, were not recovered due to poor hole conditions.

A 3 ½ in. casing string was run and cemented to test the two zones. Prior to testing, Otto’s internal petrophysical and engineering analysis indicated up to 15 billion ft³ and 900 million bbl of potential in the logged sands. The well was perforated using high pressure equipment across the two zones and tested, producing non-commercial volumes of gas with small amounts of CO₂ and H₂S. No liquid hydrocarbons were recovered. Hilcorp and Otto have agreed that the low flow rates observed are not sufficient to economically justify the future costs of a fracture stimulation, facility and pipeline connection.

Otto’s Managing Director, Matthew Allen, commented: "This is a disappointing result. Initial log results indicated the potential for a commercial discovery. The data from this well will be used to evaluate further prospects in the area. Otto is continuing with its strong pipeline of activity, with development drilling at Green #2 well, development planning ongoing at GC 21, and preparations for drilling the Beluga exploration well.”

Read the article online at: https://www.oilfieldtechnology.com/exploration/07112019/otto-energy-provides-update-on-mustang-well/