Talon Petroleum's (ASX:TPD) oil production during the first month at the Quintanilla OL 1H well delivered 10,748 barrels of oil equivalent, with 9,300 barrels of oil plus 8,686 mcf, on restricted flow from a 12/64 inch choke.
The 30 day average production was 383 boe per day, adjusted for 3 days of limited production when the choke plugged with debris.
The current rate of production is 484 boepd on 13/64 inch choke.
The well was placed on a restricted choke of 12/64 inch after the initial production test while tests were conducted to ensure that the well would produce at a the highest economic value over its expected production life.
Testing confirmed that the reservoir is a single phase oil reservoir and that the well may be produced accordingly.
Notably, the original 2,900 psi flowing casing pressure has only declined to 2,350 psi after producing 10,748 boe during the first 30 days.
Although it is early in the well’s productive life, the pressure data bodes well.
The company has a 10% working interest in this lease and holds a 100% working interest in 3,600 acres adjoining the Quintanilla lease, subject to third parties’ options to acquire a 50% working interest.
Quintanilla OL 1H was drilled to a total measured depth of 13,555 feet with a 4,286 foot lateral section into the Olmos formation.
Talon’s Mosman Rockingham Olmos leases lie on the flank of the AWP field which has produced 48.9 million barrels of oil and 490.5 billion cubic feet of gas from the Olmos sandstone reservoir.
The leases are also located about 18 miles from the STS Olmos Project where 8 successful horizontal wells have recently been drilled.
Based on nearby analogue horizontal well performance, the gross contingent resource potential is estimated to be 235,000 to 327,000 barrels of oil equivalent per well.
Besides providing cashflow, success will also open up the rest of the acreage.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.