targeting 21 billion cubic feet of gas

http://www.proactiveinvestors.com.au/companies/news/24962/verus-investments-targeting-21-billion-cubic-feet-of-gas-with-fausse-point-sidetrack-well-24962.html

Verus Investments targeting 21 billion cubic feet of gas with Fausse Point sidetrack well


Tuesday, February 07, 2012 by Bevis Yeo

Verus Investments (ASX:VIL) estimates the planned sidetrack well at its Fausse Point project in Louisiana could target potential unrisked recoverable reserves of up to 21 billion cubic feet (Bcf) of gas in the primary interval.

The company had carried out a review, which included local geological data and analogue well data, that also indicated there were additional prospective sands above and below the main objective.

Recent information from a nearby analogue well that flowed 158 barrels of oil and 6.4 million cubic feet of gas per day indicates multiple sands more than 100 feet thick.

Verus added final review of the TGR-1 sidetrack will be completed soon and the sidetrack drilled in the second quarter of 2012.





Verus has a 72% non-operating stake in Fausse Point.

Operator Golden Gate Petroleum (ASX:GGP), which owns 18% in the project, had previously said the sidetrack will cost about US$1 million and that leases over the target had been put in place.

It also that 3D seismic had identified a separate oil target.

Leasing over the target is nearly completed and the permitting process has started. This is expected to take several months due to the drill site being in a wetland area.

The Fausse Point Salt Dome has produced over 44 million barrels of oil and 141Bcf of gas in the past.

Texas and Louisiana

Over in Texas, West Bowtie project operator Texakoma plans to drill an exploration well in March on the Sugar Valley-1 prospect.

Verus, which holds 18% in the project, said it had completed a preliminary review on the prospect to assess reserves, economics, risk and chance of success.

It will hold a final review with Texakoma this month to assess the potential and agree to participate.

Meanwhile, Golden Gate is planning to test the Jumonville-1 well at the Bullseye project, Louisiana, in the shallower Camerina interval, after it is declared non-commercial.

The Camerina is estimated to hold 2.2 to 7.1 million barrels of oil and 2 to 7 Bcf of gas though reservoir extent and productivity are unknown at the moment.

Production from Jumonville-1 and Jumonville-2 have been reaching their economic limit with the first expected to be suspended during the current quarter while the second well may be suspended by the middle of the year.