Terrace Energy Corp. (OTC: TCRRF;TSXV: TZR) reports another successful completion from its 2013 delineation horizontal drilling program on its STS Olmos Project in South Texas with its partner, BlackBrush Oil & Gas LP, the company said in a press release on Oct. 30.
The SP5 AW A1-27H well, was drilled to a measured depth of 14,350 feet, including a horizontal section of 4,800 feet in the target interval and was successfully fracture stimulated in 17 stages.
After less than 4% load recovery, the well is stabilizing at a rate of 654 barrels per day (bbl/d) of oil and 1.4 million cubic feet per day (MMcf/d) of liquid rich gas.
This well marks the eight straight successful completion of the company's STS project and is testing at rates consistent with the previously announced completions, with 30-day IP rates averaging over 1,000 barrels of oil equivalent (BOE/d). These consistent, repeatable results validate the key objective of the 2013 delineation drilling program and confirms that the Olmos Sandstone is capable of producing economically attractive drilling locations across the majority of the company's leasehold interests in this project. There can be no assurance that the flow rate will stabilize at current levels over time.
Terrace holds a 37.20% working interest and a 27.90% net revenue interest in the SP5 AW A1-27H.
Drilling and completion operations have been successful on all of the planned wells in the 2013 program. Based on the success of the 2013 delineation program, the company and its partner have revised their estimates of potential additional drilling locations to 160 gross locations based on 80 acre spacing and are currently formulating plans for an aggressive development plan to begin in early 2014. Terrace currently holds an average of 33% working interest and a 25% net revenue interest in 15,600 gross acres (5,105 net acres) in the STS project.
"This latest well continues to demonstrate the consistency and repeatability of the STS project's productive capabilities. The 2013 delineation drilling program has been an outstanding success. Building on this, the 2014 program will be focused on rapidly capitalizing on the success to date and aggressively optimizing development costs as we move into the development phase of this exciting program," Dave Gibbs , CEO, said in the release.
Terrace Energy Corp. acquires, explores, and develops unconventional onshore oil and gas properties in the U.S. The company is headquartered in Vancouver, B.C.