Utah-focussed oil and gas company Golden State Resources (ASX: GDN) has received initial results of petrophysical evaluation of the Paradox Basin # 3 production well in Utah.
Independent evaluation of wireline logs by RPS Energy in Dallas indicates Paradox Basin #3 has encountered significant gas.
Total gas pay exceeds 116 feet which occurs in seven main zones. The zones correspond with gas shows observed while drilling. Rick de Boer, executive director of GDN said this is an excellent result and the company has made the decision to complete and test the well.
Main gas bearing zones are:
Gas zone 1. Logs indicate a gross interval of 28 feet with 10 feet net gas pay. NMR (Nuclear Magnetic Resonance) shows good permeability in the upper part of this zone.
Gas zone 2 has a gross thickness of 36 feet with a net of 23 feet. NMR indicates high permeability is present from 10,900’ to 10,907’.
Gas zone 3 is one of the more significant show zones and was responsible for elevated gas readings during subsequent reaming and hole conditioning runs. The zone appears to have intersected a major gas filled fracture based on the sonic log.
Overall this zone has a low net pay due to low porosity. Open natural fractures can be highly productive and this zone will be examined in more detail once the FMI (Formation Micro Imaging) log is processed.
Zone 4 had a show of 270 Units while drilling. Logs indicate this may be the most significant gas bearing zone in the well with a 70’ thick gross interval containing 30 feet of net pay. NMR indicates this zone will require stimulation. A second thick gas bearing interval Zone 4a is present below zone 4 and this zone has a gross thickness of 90 feet with 36 feet net pay.
This zone demonstrates permeability on the NMR log.
Gas pay zone 5 corresponds to show 5 of 416 Units. NMR indicates this show has high permeability extending approximately 10’, in contrast conventional logs suggest 3 feet of net pay. Between zones 5 and 6 there are numerous thin bed intervals which demonstrate pay.
Gas pay zone 6 recorded the highest gas level while drilling at 3098 Units. The NMR suggests the show occurs over a zone of high permeability. This zone will be included in the testing. This zone occurs near the total depth and due to proximity to the base no neutron or density logs are available.
Wireline logging operations on Paradox Basin #3 commenced late Friday WST. The three logging runs conducted provided excellent coverage and overall good quality logs. Logs were sent to RPS Energy in Dallas for initial petrophysical evaluation. That evaluation has confirmed the presence of gas in several intervals.
RPS will now proceed with a more comprehensive evaluation which will include the processed NMR and FMI logs.
This work will be completed during April in preparation for testing in late April.
Paradox Basin #3 has encountered higher levels of background gas and better gas shows than observed in the previous two wells. These shows correspond well with the petrophysics and permeability seen on the NMR logs. The combined gas show interval of 131’MD (114’ TVD) occurs in six zones.
GDN directors said they are very pleased with the drilling results and looking forward to the further evaluation and testing of Paradox Basin #3.
The forward plan is to complete the well with 5” casing to TD. Casing will be cemented with a high grade cement and the pipe will be centralised with multiple centralisers.
Once the casing is set Rig 234 will be stacked on location, and a specialised test rig will be mobilised for the completion following the evaluation. Casing and demobilisation will take about 10 days and will run concurrent with ongoing evaluation and planning.
The final stimulation and testing programme will be prepared in mid April with the assistance of a stimulation expert from RPS in Calgary. Pending the availability of equipment Golden State expects the testing to commence in late April.