|By Marketwired .||
|February 26, 2014 07:11 PM EST||
WEST PERTH, AUSTRALIA -- (Marketwired) -- 02/26/14 -- US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to provide an update on its Fairway Project in West Texas.
- Sydney #2 is presently flowing at 395 BOEPD (311 BOPD with 503 mcfgd) from the Fusselman Formation -- exceeding the initial high-end production rate (announced 19 February 2014) by 25%.
- Drilling has commenced at BOA 12 #3, considered a low risk, step-out well situated approximately 550m (1,800 ft) southeast of the Company's 2011 BOA 12 #1 well. The well is expected to be in an up-dip position which should greatly improve the prospectivity of the Fusselman formation. The well will test both the Wolfberry and Fusselman sections and is expected to take 15 days to drill to the planned Total Depth of 3,048m (10,000 ft).
- At Wagga Wagga #1, the completion and testing program remains underway. The Devonian section was fracture stimulated on 21 February 2014 at a depth of approximately 2,850m after previously recovering oil while swabbing the well. The well is presently recovering load-water.
Managing Director, Laurence Roe commented on the increase in production at Sydney #2: "We are delighted with the 25% increase in production at Sydney #2 -- the rate appears to have stabilised at around 395 BOEPD -- a very good result.
"We are also back to drilling with the first well in our 2014 Fairway program, the BOA 12#3, which commenced drilling operations earlier this week. This is a low risk, step-out location close to our BOA 12 #1 oil well. In the light of the very good results seen so far in Sydney #2, this should be a very exciting well.
"At Wagga Wagga #1, we have completed the single stage fracture stimulation of the Devonian section -- we are presently recovering load water from the frac. As mentioned previously, we are also progressing plans to proceed with a more extensive frac interval, production from which would be additional to any production from the Devonian."
NOTE: In accordance with ASX Listing Rules, any hydrocarbon reserves and/or drilling update information in this report has been reviewed and signed off by Mr. Laurence Roe, B Sc, Managing Director of Target Energy, who is a member of the Society of Exploration Geophysicists and has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears.
Target Investor Relations (Houston)
+1 713 304 6962 cell
+1 713 654 4009 direct
+1 713 275 9800 direct
Business Development Manager (Perth)
+61 429 702 970 cell
+61 8 9476 9000 direct