Continental Focus, International Reach

Caracal Drilling Away in Chad

Thursday, September 19, 2013

Caracal Energy Inc offered an update on its exploration activities in Chad. The company’s first exploration well, Krim-1, has been drilled to 2,630 meters and cased across the C and D sand horizons. Drilling results indicated approximately 50 meters of good porosity intervals with good oil shows in the Cretaceous C and D sands. Cased hole wireline logs across the Cretaceous C and D sands are currently being processed and analyzed.

An open hole drill stem test (OHDST) has been completed over approximately 35 meters of gross E sands drilled to date achieving a maximum natural flow rate of 2,580 bpd of oil. Further testing is planned on this section with potential for further E sands to be encountered and tested as drilling continues to a TD of around 3,332 meters.

Caracal also conducted extensive testing of the Cretaceous E sands in the Mangara-5 well, its first opportunity to do so. The first cased hole test was over the interval 2,950 – 3,095 meters (29.5 meters of net perforations). The well was swabbed for 30 hours and confirmed 100% formation water as suggested by petrophysical interpretations.

The second cased hole test was from 2,474 – 2,669 meters (75 meters of net perforations). The initial 53-hour flow test resulted in a maximum natural flow rate in excess of 1,900 bpd. No formation water was observed for the duration of this test and based on surface pressure data, no pressure or production decline was observed. Further testing is on-going that will reduce the range of uncertainty on this well’s potential.

The company anticipates testing the Cretaceous E sands in the western lobe of the Mangara Field, with the Mangara-6 well results due later this year. For the western lobe of the Mangara field, the McDaniel Report estimated (on a resource audit prior to drilling results), un-risked Prospective Resources of 15 million barrels and 35 million barrels on a Pmean and P10 basis, respectively. No reserves have been assigned in the western lobe of the Mangara field.

Over on the Badila field Rig 96 continues to drill the Badila-4 well. Some delays were encountered due to fishing operations to retrieve a stuck logging tool. The well has reached TD and penetrated the Cretaceous C, D, and E sands. Further wireline logging is underway prior to running production casing and testing the well.

Rig 96 will move next to the Badila-5 well site, which is located immediately adjacent to Badila-1 and Badila-2. This is expected to occur during October 2013.

The access road and well site for the Bitanda exploration well, adjacent to the Badila field, are under construction. The company anticipates spudding the Bitanda well after Badila-5.

Gary Guidry, CEO of Caracal Energy, said: “We are very excited by the results of the Mangara-5 E sands testing. This has the potential to accelerate our development plans and production goals for Mangara. We have now confirmed the presence of oil over a gross column of 195 meters. We are also excited about the preliminary results and oil flow tests to date from our first exploration well at Krim.”

 


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