Join our daily newsletter At The Bell to receive exclusive market insights
- Eon NRG (E2E) has completed drilling at the Govt Kaehne #9-29 well with initial indications showing a quality reservoir with good oil shows
- The well was targeting oil production from the Dakota Sandstone Formation with a secondary target being the Muddy Sandstone Formation
- Oil production is expected to be flowing and available for sale in January 2020
- Eon has ended the day 16.7 per cent in the red with shares trading for 0.5 cents apiece.
Eon NRG (E2E) has completed drilling of the Govt Kaehne #9-29 well with initial indications showing a quality reservoir with good oil shows.
The well was drilled to a total depth of 1969 metres and the good oil shows were observed in both the primary and secondary target formations.
The well was targeting oil production from the Dakota Sandstone Formation with a secondary target being the shallower Muddy Sandstone Formation.
Schlumberger wireline logs were run after reaching the total depth and these logs were then sent to Schlumberger (oilfield services company) for further petrophysical analysis and insight into potential pay zones within the Dakota and Muddy formations.
Both of these formations are present and productive within the field.
Schlumberger calculations resulted in a total of 21 days of net pay in the Govt. Kaehne #9-29 well.
The Dakota formation has 14 days of net pay beginning at 6322 feet while the Muddy formation shows 7 days of net pay beginning at 6068 feet.
Good to excellent oil shows and gas shows exceeding +1000 units in each of the formations further support the presence of producible hydrocarbons within each of the formations.
There seems to be no evidence of water underlying the oil column within either formation with the interpreted oil column deeper than the inferred original oil-water contact for the field.
This suggests that the area is a separate compartment and could be at undisturbed pressure.
Penetration within the Dakota formation varies with Neutron-Density cross-plots showing 15-18 per cent penetration throughout.
The Muddy Formation produces throughout the Donkey Creek Field from similarly thin intersections and two wells in the southern portion of the field have produced cumulatively 95,000 and 64,000 barrels of oil with no water and very little gas.
“The results to date from the logs on the #9-29 well have confirmed our understanding of the reservoir and give us confidence to continue with our future development plans,” Managing Director John Whisler commented.
“We are confident that the production from this well proves to be economic,” he added.
The completion phase should be finalised within 45 days at which time production will be brought on-line for sales to begin.
First delivery of oil to the refinery is expected in January 2020 with payment for these deliveries within the following month.
This is the first well that has been drilled in Eon NRG’s expansive acreage that it holds within the Powder River Basin, Wyoming.
It has demonstrated that management can effectively identify and execute the drilling of successful well and forms a strong base from which to launch the next phase of its development plan.
The company is continuing to elevate production and drilling opportunities, and expects to acquire additional production and drill additional wells in 2020.
Eon has ended the day 16.7 per cent in the red with shares trading for 0.5 cents apiece in a $4.619 million market cap.
