Add a New Bulls Reason

Company: Oilexco (TSE:OIL)
Current price:
Headline: (100 character max)
Analysis:
Cancel
0%
agree
0 votes

  Oilexco (TSE:OIL-T)/Bulls/Oilexco (OIL-T)/Bulls/Moth ( North Sea ) Discovery Annouced

Oilexco Announces Significant Discovery At Moth


17:00 EDT Thursday, June 26, 2008

Oilexco Incorporated ("Oilexco" or "the Company") (TSX:OIL) (LSE:OIL), through its wholly owned subsidiary Oilexco North Sea Limited, is pleased to announce a significant dual zone oil and gas-condensate discovery at Moth, located in Block 23/21 in the UK Central North Sea. Oilexco earned a 50% working interest at Moth. The Company's partners are BG Group, Hess, and BP.

The 23/21-6z Moth discovery well was drilled to a total depth of 14,616 feet. Hydrocarbon-bearing reservoir sands with a thickness of 605 feet were intersected in the Middle Jurassic Pentland and a further 219 feet were intersected in the Upper Jurassic Fulmar.

The Middle Jurassic Pentland sands at depth of 13,283 feet were drill-stem tested through perforations from 13,276 feet to 13,730 feet in 439 feet of oil and gas bearing reservoir sands. The drill-stem test flowed oil and gas to surface but, before this flow could be diverted to the test separator to accurately determine the flow rates, a packer failure of the downhole test tools occurred with the result that no determinative results from this test are available. Although initial indications are encouraging, the Company has decided not to continue with the testing process of the Pentland sands at this time. Further testing will likely occur during the course of additional appraisal drilling in the future.

Preparations for drill-stem testing of the primary target, the Upper Jurassic Fulmar interval, will commence immediately after the suspension of the Middle Jurassic Pentland zone. The Upper Jurassic Fulmar sands at a depth of 12,982 feet will be perforated from 12,980 feet to 13,030 feet in 118 feet of gas-condensate bearing reservoir sands. Testing operations of the interval should be completed in 15 to 20 days time.

The partners will put together a forward programme for the development of this discovery. Future appraisal wells will likely utilise higher capacity testing equipment in order to determine the maximum achievable flow rates.

"Oilexco remains the most active driller in the UK North Sea and we continue to achieve significant results from our exploration programme, with Moth being the second major discovery to be made by the Company in the last year" said Arthur Millholland, President and CEO of Oilexco. "We believe that the Moth field has the potential to be very material to Oilexco, and look forward to the test results from the primary zone."

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki