Baraka Energy and Resources (ASX: BKP) and joint venture partner PetroFrontier Corp (TSX-V: PFC) are set to kick-off the highly anticipated drilling campaign in the Georgina Basin, with a rig mobilised to site in around a week.
One at site the rig will be subject to a final government audit prior to spud.
The first well to be drilled by PetroFrontier will be the first horizontal and multi-stage fracture stimulated well on EP 103, Baldwin-2, which will be a twin to the D&A Baldwin-1 vertical well, drilled in 1990.
Baldwin-2 will be followed by the company’s second horizontal well, Macintyre-2 on EP 127 where Baraka is “free carried” to the completion of the well. Baldwin-2 will have a 1,000 metres horizontal leg and is anticipated to take three weeks to drill.
After drilling operations are completed on Baldwin-2, the company plans to suspend the well and drill Macintyre-2 on EP 127, and fracture stimulate the wells after drilling operations have concluded.
Macintyre-2 will be a twin to the historical MacIntyre -1 well, and will test conventional targets before entering the Arthur Creek Shale and complete as a horizontal well that will fracture and test the productivity of the shale.
Multiple locations will likely need to be tested to evaluate the productivity of the “Hot Shale” play given unconventional prospect is regionally distributed in varying thickness and varying reservoir characteristics.
PetroFrontier initially anticipates well costs for horizontal and vertical wells to average $5 million and $2 million, respectively.
Each well will take five to six weeks to drill, test and complete.
Ryder Scott Petroleum Consultants
Ryder Scott Petroleum Consultants evaluated Baraka’s concessions in the Georgina Basin and estimated the lands to hold a prospective resource potential of 76.65 billion barrels of oil (unrisked, P50 estimate).
Ryder Scott estimated The Arthur Creek “Hot Shale” potential resource at 7.53 billion barrels and is the primary focus for PetroFrontier and Baraka.
PetroFrontier is targeting as its main source rock in the Georgina Basin a “Hot Shale” (high radioactive content) at the base of the Arthur Creek Formation of Middle Cambrian age.
Over the majority of Baraka’s Exploration Permits, the source beds are within the oil window.
Organic content values reach 10% in the Arthur Creek “Hot Shale”. Based on work done by the Siberian Institute of Petroleum Geology, over 280 million barrels may have been expelled from these source rocks in the vicinity of Baraka’s permitted land.
Although the oil-rich shale has never been tested, the company has identified at least 13 old wells containing prospective oil-rich zones with strong background gas.