Petsec Energy has started drilling a well at its West Crab Lake exploration gas project in Louisiana.
Drilling began earlier this week and will be drilled to a true vertical depth of 12,500 to test multiple Lower Miocene age Marg and Discorbis sand reservoirs in a fault closure syncline.
The company has a 20% non-operating working interest (15.5% net revenue interest) in the well before payout.
After payout Petsec’s working interest will be reduced to 15.5%. The firm’s share of upfront and drilling costs is estimated to be $920,000.
Completion and hook-up of the well is estimated to cost an additional US$272,000 net to Petsec.
It is expected to take approximately 30 days to drill.