Phase 2 (ASE 3)
Valued Partners,
The ASE #3's (final) buildup test is almost complete, with our team currently working through the preliminary data, with more to still receive and analyse. From what Wayne Beninger (Geologist) has reported thus far, the ASE 3 well appears to be very similar to ASE 4 well.
The analysis of the ASE 4 well's buildup test in the Misener/Hunton is finished from which we can conclude that the reservoir pressure is lower than anticipated, around 300 psi. This suggests some depletion of the reservoir but since the bubble point of the reservoir fluids is under 100 psi (the oil is undersaturated so there is no gas cap), it would not take the production of too much water or oil to cause this much decline from the expected pressure which was closer to 1,900 psi. This pressure decline does not mean that this is a small trap, but only that there is no free gas to keep the decline from being so rapid. The test also shows that the sand stimulation was effective because we are seeing a negative skin factor, -7 (stimulated as opposed to damaged), but the matrix (formation) permeability to oil is quite low. All of this makes a strong case for acid stimulation to open the pathways in the matrix to allow the oil there to get to the fracture more easily.
Wayne has mentioned on multiple occasions that based on all of his findings, conducting an acid stimulation should see oil production (ASE 3 & ASE 4) increase to approximately 40 barrels per day (per well).
Regarding the acid stimulation, our plan is to focus on the ASE 4 well first, as we have the most data on this well, including the core samples. We will first design the exact acid stimulation, followed by booking this scope of work to be completed. Once we have achieved acceptable results from the acid stimulation on the ASE 4 well, we will look to perform the same procedure on the ASE 3 well.
