Gallic Energy Suspends Operations at Ossun-2D

Gallic Energy Ltd. has temporarily suspended completion operations at its Ossun-2D well located in Southern France. 

The Ossun-2D well was successfully drilled to a total depth of 3,050 m and subsequently cased and cemented after open-hole logs indicated characteristics of hydrocarbon bearing formations in both the Upper Cretaceous Flysch Carbonate and the Dano-Paleocene.

Post perforating, the well encountered what Gallic believes are correctible problems that restricted the permeability of the formation (i.e. mud and/or cement losses into the formation at the time of casing operations).  As a result, Gallic, prior to resuming any further completion or testing operations at the Ossun-2D location, has decided to analyze all data gathered to understand the inconsistency between the lack of permeability seen post casing, and the previous formation data observed.

Mr. William H. Smith, President and CEO of Gallic, states “While the inability to obtain prompt conclusive results at Ossun 2D has not yet been achieved, we are optimistic of achieving a desired outcome. With valuable and encouraging drilling and log data now obtained, Gallic plans to utilize this information to either successfully resume completion and testing operations

on the Ossun-2 well and/or to drill future horizontal wells on the play. The majority of fractures seen on formation imaging logs are dipping 40 – 70 degrees from horizontal. Therefore a horizontal wellbore is expected to intersect many more of these fractures than can a vertical wellbore.”

Gallic also announced that it plans on drilling its next target, the Hagolle-2 well on the Ledeuix permit in the Aquitaine Basin in Southern France, in Q3 2012.

The Hagolle-2 well will target a shallow gas zone previously drilled in the 1980’s (Hagolle-1) and is defined on 3D seismic as a thrusted anticlinal structure. Hagolle-1 demonstrated a gas-charged limestone of Upper Cretaceous age at 1,100 m and extending to 1,800 m. Hagolle-2 is positioned to be updip on the same structure as Hagolle-1.