Emerald Bay Energy Inc. (TSXV: EBY) has provided an update on recent activities in Texas, the company said in a press release on Oct. 10.
At Wooden Horse, the company has completed the construction of all production facilities and has begun pumping the recently drilled Edwards horizontal well, Kuhn 1H.
"It is typical during initial phases of production for an Edwards horizontal well to yield 100% water for a period of time before the oil cut is established. This initial phase can last days or months as each well can be very different; further, the optimization of the well and facilities can also take some time. Kuhn 1H has now been pumping for over two months.The facilities have functioned flawlessly to date, and the first oil cut has now been observed," Shelby D. Beattie, Emerald Bay president, said in the release.
The company will continue fine tuning the pumping procedure to achieve a consistent oil cut and initial oil production rate in the near future.
Also at Wooden Horse, the vertical wells Kuhn 1C and Imhoff 1 have been producing for several weeks with the first load of oil having been sold from Kuhn 1C in September. Just as with Kuhn 1H these vertical wells take time to establish a consistent oil cut. The company is confident that the vertical wells will add a solid economic return to the Wooden Horse play.
At Cottonwood Creek, the recently drilled Poenitz 1 well has completed its initial testing phase. Unlike the Wooden Horse wells, this is strictly an oil well with no water to handle. The company is pleased with the initial flow rates and the high grade of crude. Facilities are being completed this week and Poenitz 1 will be producing full time in the coming days. The company has identified additional locations and drilling of the second well will commence in the coming weeks.
At Nash Creek, the company has recently received the ground water protection determination which allows permitting for a salt water disposal well to proceed. It is anticipated that the permit process will take 60 to 90 days and the well will be drilled once the permit has been granted. Similar to the development of the Wooden Horse play, the salt water disposal well is the key initial step for developing the Nash Creek play.
At Holmes Lake, land acquisition efforts have successfully concluded for the initial exploratory stage of the project. It is expected that drilling of the initial test well will take place in early 2014.
In Atascosa and Medina counties, Texas, Production Resources Inc. (PRI), a private company in which Emerald Bay has 25% ownership, continues to move ahead with drilling new wells as well as workovers of existing wells. PRI has seen production double from 50 barrels per day (bbl/d) to 100 bbl/d in the past year. With the addition of the recently acquired wells in the Somerset Field and the re-perforating program that PRI is undertaking, it is anticipated that PRI will see production double again in the next six to nine months and sustainable growth on existing land holdings for several years to come.
Emerald Bay Energy Inc. is an independent energy company engaged in the exploration and development of petroleum and natural gas properties in Western Canada and South Texas. The company is headquartered in Calgary.