Vancouver-based Valkyries Petroleum Corp. said initial test results for its Canales No. 1 well drilled on the Tiara prospect in South Texas is flowing 2.7 MMcf/d and 70 bbl of condensate a day. The well spudded in mid-April and reached final depth of 9,100 feet in early May. The well will be tied into nearby production facilities, and a full field appraisal program will be carried out over the next few months. Valkyries holds a 20.63% working interest in the Canales No. 1 well. Preparations are under way to drill an offset well in which the company will have a 37.5% working interest. Valkyries also reported that a private placement announced in March has closed. The placement raised gross proceeds of C$2.25 million through the sale of one million units at C$2.25/unit with each unit consisting of one common share of Valkyries and one-half of a share-purchase warrant. Proceeds will be used for general working capital purposes.
EnDevCo. Inc., a junior producer headquartered in Houston, has agreed to the natural gas and crude oil production from 14 wells located in Okfuskee and Hughes County, OK, from an undisclosed buyer. It also purchased a leasehold totaling 14,600 acres and a small pipeline company that services the leasehold. No financial details were disclosed. Production from the purchased wells is expected to be higher than 2,000 Mcf/d and 100 bbl/d of oil, and production is expected to be on stream by the end of June. The 14,600-acre leasehold potentially contains reservoirs in the Senora, Red Fork, Bartlesville, Upper and Lower Booch, Gilcrease, Union Valley, Cromwell, Jefferson, Viola and Wilcox formations as well as unconventional gas production from the Caney and Woodford shale intervals. EnDevCo estimates the original gas in place over the leasehold to be in excess of 2.3 Tcf and expects to recover approximately 500 Bcf over the next 15 years. At full production, the company projects its net revenue interest from the leasehold to exceed $150 million a year at current prices. The pipeline company serves the 14 wells purchased by EnDevCo, as well as wells producing on adjoining acreage with more than 40 miles of two- inch and four-inch gathering systems, including three taps to interstate pipeline carriers.
Emerging oil and gas company Micron Enviro Systems Inc. said drilling operations at its Manahuilla Creek Prospect in Goliad County, TX, have reached a depth of 6,000 feet toward a target depth of 7,000 feet. Two series of sand have been encountered, and the first sand included a 58-foot zone. Mud weight was cut indicating the bottom hole pressure in excess of 3,000 pounds, a geo-pressured zone. There were also sporadic oil shows in the form of fluorescents in the sands. The second series of natural gas shows occurred 400 feet below, occurring with four drilling breaks between four and 20 feet. Bottom hole pressures indicated approximately 3,800 lbs. The company is currently involved in four separate multi-well oil and gas prospects.
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