Crown Point Energy Inc. advises that it has suspended completion and evaluation operations on the La Hoyada x-1 well for the duration of the Argentine winter. Crown Point plans to return to the well after winter to install pumping equipment and conduct a long term production test.
Seven Vaca Muerta igneous intrusives totaling 51 metres in thickness were perforated and tested. The 7 intervals, after perforating, swab tested stabilized fluid rates of (in order from bottom to top): 1.5 bbls/day formation water with oil shows and emulsion; 4.5 bbls/day formation water with oil shows and emulsion; 12 bbls/day formation water with 14% oil and gas shows; dry; 73 bbls/day formation water and some gas; and the last two were swabbed together testing a stabilized rate of 226 bbls/day of formation water with no oil or gas shows.
After initial testing, the lowest 4 igneous intrusives were individually isolated and acid squeezed to stimulate the near well bore fracture system and retested in pairs. After recovering load water and spent acid, stabilized swab rates showed no significant improvement. The bottom pair swab tested a combined stabilized rate of 13.3 bbls/ day of formation water with a 30% oil cut, abundant emulsion and some gas. The upper pair swab tested a combined stabilized rate of 37 bbls/day of formation water with 6% oil, emulsion and natural gas.
Emulsion blockage was suspected to be affecting formation fluid inflow to the well so the four lower intrusives were then treated individually with de-emulsifying chemicals and retested. In general, stabilized swab rates improved substantially and were mostly formation water with oil shows. From bottom to top, respectively, stabilized swab rates, after recovering load and treatment volumes, were: 362 bbls/day formation water with oil shows; 350 bbls/day formation water with no oil or gas shows; 51 bbls/day formation water with 5% oil cut; and 6.6 bbls/day formation water with oil shows. The seven intrusives were then swab tested together with a stabilized combined swab rate of 90 bbls/day of formation water with oil shows.
The Company believes that emulsion blockage continues to be a problem and plans to return to the well after the Argentine winter to install pumping equipment and conduct a long term production test. Production experience in the area suggests that with continuous pumping oil production rates and volumes may improve as the effects of the emulsion blockages lessen.
Crown Point has not yet received full results from the laboratory work being carried out on the drilling samples retrieved from the penetrated Vaca Muerta shale in the La Hoyada well. However preliminary analysis indicates that the Vaca Muerta shales in the La Hoyada well have a total organic content ranging between 2-3%.
Tests were also conducted on a deeper interval in the PreCuyo Formation and on two shallower intervals in the Chachao and Agrio Formations respectively. All of these intervals tested dry with no fluid entry.
