Mira Resources Corp ("Mira") and its wholly owned subsidiary Equinox TSB Development (Nigeria) Limited are pleased to announce the completion of the Testing Program at Tom Shot Bank 1 ("TSB 1").
Mira has completed its testing program of Tom Shot Bank. TSB 1 flowed a 120 foot section out of the 210 foot U7 interval in the Lower U7 for seven days under different choke sizes; the flows ranged from 77 barrels oil per day ("bopd") to 512 bopd, averaging at a rate of 280 bopd with no formation water and a GOR in the 850 to 950 range. Mira allowed this lower zone four days to clean up and then conducted controlled tests at various choke sizes for three additional days to gather the pertinent information.
As previously announced the anticipated flow rate from the U7 was modeled by our independent reservoir experts incorporating the newly acquired data to predict a flow in excess of 1500 bopd on a 32/64" choke. After further analysis of our production models it has been suggested that due to near well bore reservoir damage during the original drilling of TSB 1 in 1980 when they took a hydrocarbon kick, additional stimulation techniques are required to increase the flow rates. Due to the variable flow rates it was estimated it would require an additional ten days to calculate a definitive skin and permeability, therefore the test was terminated. The most logical completion scenario that our independent completion and testing experts have modeled is through a comingled flow of the U4 gas reservoir and the U7 interval these two intervals have the ability to deliver in excess of 2500 bopd. As this is a completion and requires additional equipment, we are unable to complete the well at this time and we will start suspending the well and will re-continue the completion as a producer in conjunction with the drilling of TSB 3 in early 2012.
Thomas Cavanagh, President of Mira, stated, "We have successfully confirmed the presence of a light sweet 41.6 API oil in the lower 120 feet of the 210 foot thick U7 interval with no formation water produced during the tests. This production test confirmed the calibration and accuracy of the new well log interpretation thereby significantly de-risking an additional Gross 19 feet of oil in two sands in the U4, oil in the Upper 60 feet in the U7, 48 feet of oil in the U8 (with an additional 43 feet with indications masked by the two sets of pipe), and oil in the upper 74 feet in the U9 reservoir. The U 9.5 and lower U9, due to the interpreted high laminations delivered encouraging results and will be further evaluated in TSB 3 through higher resolution open hole logs and possible cores."
"Relative to potential resource and reserve revisions we are in the process of updating the 3D reservoir models for the U7, U8 and U9 with the new data. The U7 reservoir in the 51-101 for the P 50 model had 48 feet of potential, the new well logs predict 96 feet of net oil saturations in excess of 45%, the oil saturation calculation used as the cut off in poor quality formations, using a 30% Oil saturation assuming better quality reservoir would increase the interpreted net pay to 146 feet. We are extremely encouraged that we have found the U9, U8 and U7 intervals all with large intervals of high oil saturations."
"We will continue to iterate work with our contractors to update the significant larger probable oil bearing section into the 3D reservoir models which then will be supplied to an independent engineering firm to calculate new estimates of the potential of this field. The resource assessment in the 51-101 is being updated with an anticipated completion in January 2012. Additionally, we will be continuing the planning and acquisition of new data for TSB 3 scheduled for early 2012."