Pennpetro Energy PLC (LSE: PPP), an independent oil and gas company that focuses on production and development in Gonzales County, Texas, USA, has installed a high-pressure hydraulic tree and surface oil storage tanks at the Whistling Straits 5H well in the Peach Creek Oil Field, Gonzales County in Texas.
The pump has been installed and started around 17:30 Houston time last night. A cleanup period is expected to recover load water added to the well during drilling, and the operator plans to bring the well online gradually.
The well, which was drilled to 10,195 feet MD with a 7,632.22 feet true vertical depth (“TVD”), has reached its target and penetrated the crestal portion of the microfracture swarm. It will be produced over a 2,500-foot interval of open hole within the Austin Chalk.
The Whistling Straits 5H well is the first well to be drilled under the Participation, Development, and Option Agreement between Pennpetro’s 100%-owned subsidiary, Nobel Petroleum USA Inc. (“Nobel”), and Millennium PetroCapital Corporation (“Millennium”) within the 250,000-acre (1,011 km2) Area of Mutual Interest (“AMI”) petroleum joint venture in Gonzales County, Texas. The AMI, located about 290 miles (466 kilometers) due west of Houston, will provide PPP’s Nobel with a large inventory of low-risk development options in a world-class oilfield.
Under the joint development agreement, Nobel is paying 33.33% of the cost to drill and complete the well and connect it to the storage tanks for a net 25% working interest (18.75% net revenue interest), as well as a prospect fee that covers sunk costs related to leasing, land, legal, 3D seismic licensing, geological, and geophysical analysis.
