Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Oil producer Otto Energy (OEL) expects its Green #2 well will be completed in a month
  • The well is located in the Lightening oil field, discovered in February this year, which also hosts Green #1 well
  • In September, production at the project reached 360 barrels per day
  • Otto Energy’s share price is down 2.78 per cent, with shares trading for 3.5 cents each

Oil producer Otto Energy (OEL) has told the market that its Green #2 well, located in Texas, is roughly one month out from completion. The project, which Otto has a 37.5 per cent interest in, is found in the Lightening oil field.

The completed well will include finalised sidetrack, logging and casing operations. This will come at a cost of $2.2 million (US$1.5 million) to Otto, payable to the well’s operator Hilcorp Energy.

The well has reached total depth, according to Hilcorp, coming in at 15,244 metres. However, difficulties were encountered during wireline logging, which is used to assess the well and define targets.

In today’s release to the market, the company explained issues with wireline logging led to a “stuck wireline tool and subsequent successful recovery, and difficulties in the hole cleanout operations following recovery which has resulted in the commencement of a sidetrack.”

Based on mudlog results, the Green #2 well may have encountered more feet of hydrocarbons than documented at the Green #1 well. Otto advised Green #1 well will remain shut for roughly 70 days while operations take off at Green #2 well.

In September, production at the project reached 11.9 million standard cubic feet per day and 360 barrels of per day.

In morning trade, Otto Energy’s share price is down 2.78 per cent, with shares selling for 3.5 cents each.

OEL by the numbers
More From The Market Herald

" Bounty Oil & Gas (ASX:BUY) buys stake in Carnarvon oil play

Bounty Oil & Gas (BUY) is acquiring a 25 per cent stake in four oil exploration licences in the Carnarvon Basin of Western

" Global Oil and Gas (ASX:GLV) begins exploration at EP127

Global Oil and Gas (GLV) has begun an exploration program at its wholly owned exploration permit EP127 in the southern Georgina Basin of
Triangle Energy (ASX:TEG) - Managing Director, Robert Towner

" Triangle Energy (ASX:TEG) and Pilot Energy (ASX:PGY) sign offtake deal with BP Singapore

Triangle Energy (TEG) and Pilot Energy (PGY) have signed a binding offtake deal with BP Singapore for the sale and purchase of crude

" Otto (ASX:OEL) to participate in two onshore Gulf Coast wells

Otto Energy (OEL) has agreed to participate in two onshore prospects in Texas.