returns on horizontals & verticals in pb, page-21

Morning all,

just to show that not all goes to plan with every well,this one in Lea county was pretty dissapointing at the wolfcamp and cisco ( cline ) intervals.Remembering this is a long way from us in Lea county New Mexico,so may not be a true reflection of the returns in our area.




ASX Release 10th April 2012

Sombrero Drilling Update-Completing Well in San Andres

Carbonate Zone

Otis Energy Limited (ASX: OTE) is pleased to provide the following update on progress at its
Sombrero project (Otis Energy 5% WI, 3.75% NRI).
The WC 35 State # 1 well was drilled to a total depth of 11,820 feet. Hydrocarbon shows were seen across multiple zones in the well in the San Andres, Wolfcamp and Cisco formations. The WC 35 State # 1 well will be completed and flow tested in the San Andres formation.
The original targeted zone in the Upper Cisco proved to be tight although moderate shows were noted in the interval. Additional shows were observed while drilling through the thick Wolfcamp section and Lower Cisco formation, however these intervals were determined by logs to be wet or tight at this well location.
The well will now be plugged back to a depth of 4,750 feet and completed across a 10 feet interval in the San Andres formation where positive mud log and electric log results were observed. The San Andres is an oil producing carbonate formation in the region. The completion process will involve plugging back and perforation of the San Andres section and subsequent analysis of potential flow rates.
Otis Energy Manager of Geology David Brewer commented that "while it's a disappointment to find that the Wolfcamp-Cisco formations in this well were tight it in no way diminishes the future targets we have on the 24,000 acre project. The second well targeting the Wolfcamp- Cisco formations in the project area is located approximately three miles to the North West and we will look to spud this well during the third or fourth quarter of 2012. In the mean time we may have discovered a potentially shallow developmental oil play that would be inexpensive to drill and exploit in the San Andres".
Data from the WC State 35 # 1 well will now be used to tie data back to the 3D Survey across the
Sombrero project to further define additional drilling prospects within the project area.
Otis will continue to update the market on the progress of completion operations of the WC 35
State # 1 well.
About the Sombrero Project;
Sombrero is located in Lea County, New Mexico, a prolific oil and gas producing region along the northwest Shelf of the Delaware Basin. The project covers an area of 37.7 square miles (approximately 24,000 acres) offsetting multiple producing fields in a multi-pay environment. The project is covered by a 3D seismic survey and will primarily target the Wolfcamp/Cisco formations with additional potential from the Queen, San Andres, Grayburg, Paddock, Atoka and Morrow formations.
Otis Energy Limited

A.C.N. 075 419 715

Registered Office;

Suite 25, 145 Stirling Hwy

Nedlands, Perth WA 6009

Typical completed wells in the area range from 50,000 barrels (50 MBO) to over 1,000,000 barrels (1 MMBO) total recoverable barrels per well. Average gross reserves per well in the area are 337 MBO.
Production, from successful wells, is expected to be crude oil with associated high Btu gas from the Queen through the Cisco formation at depths from 3700' to 11,750'.