Gas Shows At Kami - Drilling Extended By Two Weeks
The Pel-Tex Miami #E-1 well (the Kami prospect) encountered a strong gas kick at a depth that was close to the forecast top of one of the target reservoir zones, and has had to be plugged back and sidetracked as a result.
The kick was encountered at a depth of 13,297 feet and the well immediately started to flow. The mud returning to the surface was observed to contain an unquantified volume of gas. As a result the well was promptly shut in to prevent a blow out.
As is normal in such circumstances, the drilling mud had to be "weighted up" in order to control the increased pressure and the flow of gas, and this caused the drilling pipe to become irretrievably stuck at the shallower depth of 4,459 feet.
The drilling contractor has commenced sidetrack operations to drill an adjacent hole back to the target. It is expected to take the next two weeks or so to drill back down to just above the depth where the kick was encountered, but this time with the advantage of knowing the pressures at different levels in the well. At this point casing will be set and drilling will continue towards the planned total depth of 13,800 feet through the full thickness of the target reservoir zones.
Lodore's costs of drilling Kami will not be greatly affected as the well is being drilled on a fixed-price contract.
Once the drilling reaches the target depth there will be a thorough evaluation of the entire target reservoir section, to determine whether the gas that has been discovered is present in commercial quantities.
Investor Relations Ness Release IBD wishes to make its shareholders aware that Lodore Resources Inc, a company listed on the AIM that is subject to a takeover bid by IBD, made a disclosure today regarding the progress of their drilling activity in the Kami prospect.