Sunday, December 7, 2008

Hiram Brook Formation: New Oil Discovery - New Brunswick

There was a new oil discovery in Canada announced this past week located in southern New Brunswick. Which oil prices falling 5% per day, the buzz isn't as great as it once was. Back in July, if positive reports would have come out on the Bakken Shale located in Canada, North Dakota, and Montana, it would have been all over the news.

Corridor Resources Inc. (CDH – TSX) reported December 3rd that it made a potentially significant oil discovery at its South Branch G-36 well situated 3 kilometers southeast of the McCully natural gas field in southern New Brunswick. The G-36 well penetrated a thick sequence of Hiram Brook sands containing indeterminate fluid content based on well logs prior to being drilled to a total depth of 2642 meters, nearly 500 meters into the underlying Frederick Brook shale. The well has been cased and two frac stimulation treatments have been carried out over two intervals within the Hiram Brook formation. The first frac, conducted over 10 meters of potentially gas bearing sands within the depth interval 1757 - 1840.5 meters in the lower Hiram Brook formation, yielded a show of oil and no measurable amounts of gas and is considered to be tight. The second frac was conducted in a 38 meter thick sand within the depth interval 1574 – 1612 meters in the upper Hiram Brook formation. The frac placed 30 tonnes of proppant prior to being prematurely concluded due to a frozen water line which may have reduced the effectiveness of the frac. Following 10 days of flow-back and clean-up of frac fluids, the well was flowing clean, 45° API oil and no water at a measured rate of 59 barrels of oil per day through production tubing. The well is currently shut in awaiting installation of a pump to reduce down-hole pressure and increase the rate of production prior to undertaking long-term testing later in December to evaluate the economic potential of the well. An additional 31 meters of potential oil pay (previously reported as potential gas pay) in the upper Hiram Brook formation have not as yet been completed in this well.

Full Article