Notably, the well targets the same stratigraphic horizon that various oil companies - including Halcón Resources Corporation (NYSE: HK) and EOG - have reported oil flows in the past eight weeks.
"After our extensive discussions with other oil companies, frac consultants and contractors over the past 8 weeks, the Operator has settled on a frac design for T.Keeling-1H that is very similar to the design being used successfully in recently completed completed (nearby) Lower Woodbine lateral wells," Sun managing director Govert van Ek said.
"In addition, the Operator has engaged an experienced frac contractor (Fractec), which completed the frac jobs on EOG's nearby Lower Woodbine wells. A positive result shortly would be very encouraging indeed."
Sun has a 50% interest in the Amerril Oil Project where the T.Keeling-1H well is located.
Fracture Stimulation operations
Operator Amerril Energy LLC has commenced the frac of the T.Keeling-1H well, which will initially consist of five frac stages across 1,500 feet of the toe of the lateral section of the well.
These stages will have between three to five clusters of perforations per frac stage and a frac fluid and proppant pumping program that is similar to those used in successful Lower Woodbine wells completed nearby.
The results of these first 5 stages will then be analysed, including a period of flow back, prior to returning to the well to complete the fraccing program across the remaining 5,500 feet of the well lateral.
Fractec, is the same contractor that is currently used by EOG on its nearby Lower Woodbine horizontal wells.
The Operator has concurrently suspended operations on the Seale-1H horizontal well in order to allow for the fraccing operations to commence at the adjacent T. Keeling-1H horizontal well.
Further attempts to unblock the Seale-1H wellbore will be considered after fraccing and flow back operations have been completed on T. Keeling-1H.
If this work is successful, the remaining frac plugs could then be drilled out and the full well flowed back to remove frac water and allow for oil production across all 23 frac stages.
In the past 8 weeks, various oil companies (Halcon, Clayton Williams, EOG and Silver Oak) have announced oil flow results from 10 horizontal wells, each drilled into the same stratigraphic horizon as the T.Keeling-1H horizontal well.
These horizontal fracced wells were drilled into the horizon labelled by oil companies as either the "Eagle Ford", "Dexter", "Manness Shale", "Lower Woodbine" or the "Woodbine C", which all refer to the horizon referred to by Sun as the "Lower Woodbine" or the "Woodbine C".
Seven of these wells, owned by Halcón Resources, are located in Brazos County southwest along strike of Sun's Seale-1H and T.Keeling-1H wells in the Amerril Oil Project.
These wells had average cumulative production of 40,000 Bo per well over the first 90 days of oil flow with Halcón's reported type curve showing an estimated gross estimated ultimate recoveries (EUR) per well of 371,000Boe and IRRs exceeding 50% at current oil pricing.
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