The Mary Ridgeway#1 well is estimated to hold larger recoverable reserves compared to ViaLogy’s previously announced Cindy Bartlett#2 well discovery announced in March 2009. As before, Vialogy predicted the subsurface hydrocarbon reservoir boundaries, the porosity of the oil-bearing Bartosh sands, formation depth, and positioned the well. Prospect estimates were confirmed by the well-logging and independent subsequent core laboratory analysis. The companies will be releasing actual figures over the next few days, including dollar estimates of recoverable reserves. As announced earlier, under its current contract with Atascosa, Vialogy will receive 5% Back-In-After-Payout working interest in the well.
As in the previous successful oil find in March 2009, Vialogy’s proprietary QuantumRD(TM), a software-based seismic interpretation service, served as the analytical tool for assessing 3D seismic data sets. Vialogy now turns its attention to its next contracted Atascosa well project, with drilling expected to begin before the end of second quarter of 2009, and, equally as important, to business opportunities with new customers. Interest in the technology appears considerable.
Robert W. Dean, Vialogy chief executive officer said, This successful well marks a major step forward for the company in demonstrating the capability of QuantumRD and its relevance in the oil patch. Our hope and intention is to enable multiple producing wells in the coming months, cautioning at the same time that no seismic interpretation technique can be one hundred percent effective one hundred percent of the time. What we can bring to the industry over time is a major improvement in the ratio of drilling dry holes to producing wells, and thus considerable cost savings.
