Phase 3 (ASE 4)
Valued Partners,
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 Beninger (Geologist) has mentioned on multiple occasions that based on all of his findings that conducting an acid stimulation should see oil production increase to approximately 40 barrels per day. Our plan is now to design the exact acid stimulation, followed by booking this scope of work to be completed.
