U.S. Oil & Gas PLC, the oil and gas exploration company with assets in Nevada, said it has successfully plugged the Eblana-9 well, with the site now ready for remediation.
The group said its technical team is currently reviewing downhole data from the Eblana-9 well, along with all previously collected and analysed data, to revise the company’s picture of the oil system in the East and to identify possible additional drill targets.
During the Eblana-9 drill, downhole data fully corroborated the pre-drill interpretation of the 2-D seismic lines used to target the well. Structures were encountered as predicted by the interpretation. The company said it believes this development is highly significant, as it greatly increases confidence in the potential of existing seismic lines to accurately identify structures of interest.
In addition to identifying potential drill targets to the East in the light of the Eblana-9 results, prospective targets on the company’s West Play will now be further assessed.
Throughout 2020, geological work on the West Play continued and is now almost complete. It had been believed that to finalise drilling locations in the West Play additional seismic data would be needed, as the accuracy of interpretation of the existing lines was unknown.
However, since Eblana-9 has confirmed that the existing 2-D seismic accurately delineates structures of interest, and the company’s structural interpretations are sound, further seismic may not be required, as the existing lines extend to the West and adequately cover the area of interest.
The company pointed out that its cost-effective and disciplined approach to the Eblana-9 drill allowed significant funds be conserved, not only enabling it to continue as a going concern but also to actively continue exploration.
The emphasis at this time is on completing the scientific work in the near term, the group added, which will allow it to determine the location and cost of its next well. As soon as a drill location is finalised, an Application to Drill (APD) will be submitted to the Bureau of Land Management (BLM). The company said it expects the permitting process to proceed efficiently and without undue delay.
In a statement, Brian McDonnell, CEO of US Oil and Gas said, “We have efficiently plugged the Eblana-9 well and cleared the site in preparation for site remediation work. As with its previous wells, the Company is fulfilling its environmental, moral and regulatory obligations to minimise the impact on the environment.
“We are now closely analysing the data collected from the Eblana-9 well, not only to understand the results of the drill but to identify additional drilling targets. Already, it is clear that our interpretation of the existing 2-D seismic lines used to delineate structures of interest has been confirmed by the drill. This is excellent news for us, as the same seismic lines extend across our West Play. We now know that those lines are in fact capable of precise interpretation.
“In terms of further exploration, we have hit the ground running. We expect to have our next drill locations identified and assessed within weeks and an APD submitted immediately afterwards. Our efficient drilling of Eblana-9 and careful financial risk management successfully contained costs and resulted in low financial exposure. Our belief in an extensive oil system in Hot Creek Valley remains unshaken, and we mean to take the Company forward to its next well within the shortest possible time.”