pcl

USA California – Tulainyo Gas Discovery
Location: Sacramento Gas Basin
Project Size: 152 square kilometres
JV Partners: CRPC (Operator) (NYSE) 41.67%
Pancontinental Oil & Gas NL **(ASXCL) 33.33%*
Cirque Resources LP (Private) 25.00%
The second well in Pancontinental’s 2017 drilling programme, Tulainyo 2-7,
commenced and was completed during the quarter. The well reached a
planned total depth of 5,700 feet (1,737m) with the key target zones
protected behind casing for future flow testing. This was a significant
mechanical achievement. Past drilling attempts, mostly attempted decades
ago, were not able to evaluate this large structure adequately due to
mechanical difficulties associated with an over- pressured geological setting.
Progress has been made
evaluating the well, in
particular the wireline logs. As
more information has become
available, Pancontinental has
grown more confident that the
entire section of interest is gas
saturated and there are
sandstone reservoirs of
sufficient quality to support
commercial scale flows of
natural gas. The intended
testing programme, which is
expected to commence within
February will assess these
theories and may find Tulainyo
2-7 to be the play opening well
the joint ventures believes it to
be.
Pancontinental was mostly
funded for the drilling of
Tulainyo 2-7 by investment
partner Raven Energy Limited
(formerly Magnum Gas and
Power Limited) who in return for funding the drilling will earn a 60% interest
in the Pancontinental 40%- owned and managed subsidiary which holds the
Tulainyo Gas Discovery Project.