Triton American commences jet drilling activities on Blackwell leaseadmin
Tuesday, August 8th 2006
Triton American Energy Corp. reports its subsidiary Triton American Well Service, LLC has commenced with jet drilling activities on the first of twelve wells, the Blackwell #10A.
Multiple laterals will be drilled in the well, opening the well bore to virgin areas of high permeability in the Lower Austin Chalk and Buda formations. Analysis of gamma ray neutron logs performed on each of the wells indicates significant pay zones between 1980 and 2200 feet. Two other wells are on vacuum in order to keep the natural gas flow in check prior to application of the jet drilling and connection to the Thermal Pulse Unit, the first of which is to be installed early next week.
Although Triton Austin Chalk EOR, Inc, the operator of the property, has consistently maintained its initial representations that the Blackwell lease contains nearly 200,000 Bls of recoverable reserves or roughly 20,000 Bls per well, significant evidence in other Austin Chalk fields in South Texas, such as Pearsall to the southwest and Giddings to the northeast, have indicated recoveries of over two and one half times the traditional methodology utilizing vertical well bores and pump jacks fitted with down hole rods. In addition to its proven ability to dramatically increase reserve recovery expectations, the Company can also anticipate significant increases in cash flow over the first three years of the project as approximately 65% of recoverable reserves should be produced within that time frame as the flush production from nearby vertical fractures are opened and remain producible via the TPU with no restrictions.