TG World Energy (TG World) has said that Brooks Range Petroleum (BRPC), the operator of the Alaska north slope joint venture (JV) and a wholly owned subsidiary of the Alaska Venture Capital Group (AVCG), has advised that the Sak River 1A exploration well recovered water and a minor amount of oil during a production test.

The basal portion of the Kuparuk C-1 sandstone from 11,920ft to 12,002ft measured depth was perforated through seven inch casing. Initial flowing pressure was 1,147 pounds per square inch. An initial flow of approximately 106 barrels of diesel completion fluid into a storage tank was achieved in five hours.

The flow was then directed to a second tank through a separator where flow rates stabilized at 1,100 barrels of fluid per day over a 24 hour test period. The fluid composition was measured as 97% water on average with minor oil and gas content.

TG World paid 45.7% of the drilling, completion and testing costs of the Sak River 1A well to earn its 35% equity interest. This well is the third of a four well promote program required by TG World in Alaska. As a result of the unsuccessful well at Sak River 1A and under the terms and conditions of the project agreements, TG World will relinquish certain working interests in the Beechey point unit (BPU) leases in Alaska to AVCG.

TG World has completed its 2010 Alaska drilling program as it will not participate in the drilling of North Shore #3 exploration well with the other Alaska JV partners. The company will maintain a net profit interest after payout in the North Shore #1 oil discovery made in 2007.

TG World will also retain acreage in the BPU outside of the drilling blocks of Sak river, North Shore and Pete’s Wicked acreage. TG World maintains its 25% working interest in all leases outside of the BPU, except the north Tarn farm-in where TG will earn a 20% working interest.

Drilling of the north Tarn exploration well, which had been considered for the 2010 drilling season, is now planned to be drilled in the 2011 drilling season due to the limited time remaining in the 2010 drilling season in Alaska.