Porto Energy Announces Initial Drilling Results for Second Torres Vedras
Porto Energy Corp. the Portugal focused oil and natural gas explorer, has announced results from the drilling of the SPC-2 well in the Torres Vedras concession onshore Portugal, the second well of a proposed two to four well exploration program in the Company's Jurassic Reef Trend.
The SPC-2 was spud on August 19, 2011 and reached total measured depth at 1,957 meters on September 9, 2011. The well had live and dead oil shows while drilling and good reservoir properties in several limestone and dolomite intervals.
A porous interval of dolomite from 1,625 meters to 1,679 meters indicates pay on a petrophysical evaluation of the open hole logs. Analysis of sidewall cores taken over the interval and additional log evaluation is required to determine if the logged pay over this interval is commercial. Since a standing drilling rig is expensive, the well has been temporarily abandoned until such time as additional evaluation of the interval is completed.
The Company is currently preparing to move the rig back to the Alj-4 well to perform flow testing based on the ongoing analysis of 65 meters of conventional core and 430 meters of open hole logs in the Lower Jurassic Brenha gas reservoir.
"Initial analysis of the SPC-2 well indicates the presence of a reservoir, working petroleum system, and potential pay," said Joseph Ash, President and CEO of Porto Energy.
"At present, the test data from the SPC-2 well is inconclusive and requires additional analysis. To keep operations moving forward while we complete additional analysis of the SPC-2 well data, we are mobilizing operations back to the ALJ-4 location to complete our economic assessment of the Lower Jurassic Brenha Formation."
Based on the NI 51-101 report compiled by Netherland Sewall and Associates International ("NSAI"), the Aljubarrota gas discovery has contingent resources of approximately 363 BCF on a best estimate basis.
"The implications of what we are seeing in the geology of the Brenha indicate a greater gas charged resource in place than we originally expected," said Joseph Ash. "This along with the highly fractured nature of the basal member suggests lower thresholds for economic production since there may be no need for fracture stimulation and it is prudent at this time to flow test the well."
Porto Energy Corp. holds working interests in five concessions in Portugal's Lusitanian Basin totaling 1,444,152 net acres or 5,844 km2.