Ann: Austin Bayou Drilling Update 1 , page-19

I was just about to post this which was my contribution for the weekend.

A factor in AB’s commercial viability appears to be the ability to control the large volumes of water which will no doubt be encountered. The recent ann mentions dual completed or single injection well which indicates that the decision on what approach will be made once the drilling is complete.

“5.1.2.1 Dual Completion Wells
Oil production can decline in a well because water forms a cone around the production perforations, limiting the volume of oil that can be produced. This situation can be reversed and controlled by completing the well with two separate tubing strings and pumps. The primary completion is made at a depth corresponding to strong oil production, and a secondary completion is made lower in the interval, at a depth with strong water production “

Source :http://www.scribd.com/doc/68679633/77/Dual-Completion-Wells

Putting the water issue in context this is an extract from one of the earlier papers for geothermal:

“More than 10 billion barrels of water are in place in these sandstone reservoirs of the Austin Bayou Prospect; there should be approximately 400 billion cubic feet of methane in solution in this water. Only 10 percent of the water and methane (1 billion barrels of water and 40 billion cubic feet of methane) will be produced without reinjection of the waste water into the producing formation. Reservoir simulation studies indicate that 90 percent of the methane can be produced with reinjection.

Source: http://www.osti.gov/geothermal/servlets/purl/6934141-o0EDiU/native/6934141.pdf
Of interest also is the permit which identifies 3 targets, the deeper one being for Oil or gas.