Golden State Resources has reported the imminent commencement of the drilling of Paradox Basin #3. The mobilisation of unit drilling rig 234 is scheduled to commence on January 18, 2010 and depending on weather, rig-up should take approximately six to seven days after which the well will spud.
Paradox Basin #3 is a directional well which is specifically targeting gas production from the Ismay formation in the Golden Eagle gas field. The company has discovered the Golden Eagle gas field in 2006 with the drilling of the Paradox Basin #1 well as part of a two well farmin with Eclipse Exploration.
Paradox Basin #3 will spud from the existing Paradox Basin #1 pad, which has been re-surveyed and has been upgraded for re-use. The well will then be directionally drilled into the Ismay formation gas zone and completed with 5” casing. The objective is a target in the Ismay Formation to the north northeast of Paradox Basin #1.
Paradox Basin #3 has been specifically designed as a production well, the lower diameter casing and proximity of the casing shoe to the completion zone will maximise the effectiveness of the cement over the gas bearing strata.
Should Paradox Basin #3 prove effective gas production from the Ismay formation, then further works will be performed on the completions of the existing wells. Testing and evaluation of Paradox Basin #1 and 2 indicates that both wells can be effectively recompleted as producers.
The company is also reviewing options to re-enter Paradox Basin #2 to test the Leadville Limestone. Post drill evaluation of Paradox Basin #2 from the processed VSP suggests that the well was possibly closer than expected to the Leadville target when it was suspended at 14,216′ (4,333mts) after the bottom-hole assembly became stuck in dispersive claystone.
The Golden Eagle gas field is located in Grand county in Utah. It is located close to the Williams gas distributor which feeds Portland. The production can be readily commercialized once commercial gas production rates are established. Both existing wells on Golden Eagle field have demonstrated gas flows at rates up to 3.6 million cubic feet per day.