Target Energy Limited (Target Energy) has been informed by the operator that location site work will begin shortly at the St Martin Land #A-3 (Snapper A-3) well in St Martin Parish, Louisiana. The well is targeting up to 4.2 billion cubic feet (Bcf) of recoverable gas and 331,000 barrels of oil. Target Energy will earn a 25% working interest (WI) in zones above the Hackberry sands and a 21.625% WI in the Hackberry sands.
Snapper A-3 is expected to take about four weeks to drill to its programmed total depth of 3,277 meters (10,750 feet).
Managing Director, Laurence Roe said, “Based on our previous success at the Snapper A-1 and A-2 wells, we are confident that Snapper A-3 will boost Target Energy’s reserves and production base. It is an excellent low-risk prospect and thanks to our existing production, we already have the necessary pipeline infrastructure available to us. In the event of a discovery, we expect to bring Snapper A-3 into production in about 30 days.”
To be operated by Cypress Drilling of Azle, Texas, the Snapper A-3 well is located on the north-eastern flank of the section 28 salt-dome, about 25 kilometers east of Lafayette. The operator has cash-called the funds for the well and drilling operations are expected to commence in late May 2009.
On the basis of subsurface control, 3D seismic data and recent drilling results, the proposed well is designed to test a known fault segment for proven bypassed gas pay in the Hackberry A-1 and A-4 Sands. The bottom-hole location of the well is programmed to be at a measured depth of 3,277 meters, about 300 meters north-north-east of the Target Energy’s Snapper A-1 producing well (Target Energy WI: 25%).
The well is considered to be a low-risk development well for multiple proven and by-passed pay zones. It will directly offset a well that tested gas in the Hackberry A-1 and Hackberry A-2 Sands, but was never produced, target two zones that have logged pay in the Snapper A-1 well and also test two possible zones (first and second Marg Tex) that pinched out down-dip from that well.
In total, the well is expected to penetrate up to six pay zones, testing a prospective fault segment that has risked recoverable potential of up to 4.2 Bcf of gas and 331,000 barrels of oil (unrisked recoverable potential up to 5.4 Bcf of gas and 461,000 barrels of oil).
In addition to the Snapper A3 well, Target Energy intends to participate in the Beyt #1A well later in the year. The well will be sidetracked from the Beyt #1 borehole to test first, second and third Marg Tex sands that were faulted out in the original well. These zones have an aggregate potential of one million barrels of oil with 0.4 Bcf of gas (unrisked, recoverable). Target Energy will have a 15% WI.