Tulainyo Project Update
Studies are critically assessing deepening Tulainyo 2-7 to test a play with oil and
gas-condensate potential below the current 1,800m drill depth.
Oil or gas-condensate potential in the deeper structure has been linked to
prominent oil seeps in outcrop.
Outcrop studies also indicate the thickest reservoirs within the deeper undrilled
closure, with significant estimated gas or liquids potential in these reservoirs.
Testing of the shallower levels has been suspended without achieving
commercial flow of gas. Results are being analysed to determine possible
formation damage and evaluate reservoir quality.
Studies will also optimise alternative well locations for operations later in 2018.
Pancontinental Oil & Gas NL (ASX: PCL) (“Pancontinental” or “Company”) provides this
operations update for the Tulainyo 2-7 gas appraisal well in the Sacramento Gas Basin,
California. Pancontinental is earning up to an effective 13.33% interest in the project.
A staged testing program of interpreted gas reservoirs in the Tulainyo 2-7 well is nearing
completion with operations to be suspended pending further analysis.
A range of potential gas reservoirs were identified in the well based on gas shows, drill and
sample data and wireline logs from both the Tulainyo 2-7 and the nearby Tulainyo-1 well.
Testing of the interpreted gas bearing reservoirs in the Tulainyo 2-7 well has not produced a
commercial gas flow and it is not yet clear if this can be attributed to reservoir damage as a
result of the high mud weights used during drilling operations, or to inferior reservoir quality.
These operations at Tulainyo 2-7 were deliberately designed to evaluate the flow potential
of shallow reservoirs observed in the original Tulainyo-1 discovery well and tied to outcrop.
Tulainyo is a 91 km², multi-TCF potential anticlinal structure with closure mapped on
proprietary seismic to subsurface depths greater than 3,000 m (+10,000’). To date, the
drilling activity has evaluated less than half of the potential stacked reservoir targets with up
to 2,000m of undrilled vertical closure mapped below the deepest zones encountered in the
Tulainyo wells as drilled to date. Correlations to the outcrop in the adjacent range to the west
indicate that the thickest reservoir sections are yet to be penetrated and would be present
in this deeper, undrilled stratigraphic interval.
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