The 1081-acre lease also includes production equipment such as a pump jack and storage tanks. The company will receive 50% of the oil and gas revenue until it recoups 100% of the recompletion cost estimated at $380000.
The well was initially drilled to a depth of approximately 4600ft and because of Federal lease stipulations, completion was not attempted until October 12, 2007. The company said that during the drilling operations mud loss and a poor cement job caused formation damage and minimized the evaluation of the lower Wingate. The well was then temporarily suspended.
Forest Gate is planning to evaluate three zones: the Upper Wingate, Kayenta and the Navajo Sandstone. If commercial production is established in any zone, completion efforts of other zones will be deferred.
Don Vandergrift, president and chief operating officer of Forest Gate, said: “This recompletion project offers Forest Gate a low-risk oil well that we can recomplete in short order. This well intersected hydrocarbon-bearing formations and produced some oil from the lower Wingate Formation before it was damaged.”
