Modena Resources Limited is an Australia-based company. The...

Modena Resources Limited is an Australia-based company. The Company is engaged in petroleum exploration. The Company holds 52.5% interest in Jackson Shallow Gas Prospects; 10% interest in Wilson Prospect and South Lost Hills Properties; and 25% interest in Armstrong Properties, and 12.5% interest in Manzano Properties.

Thursday, August 26, 2010
Modena Resources Sees Potential 2.6BCF Gas Reserve At South Texas Well

Modena Resources (ASX: MDA) has identified the state track 1008-S # 1(st) well as the first significant target for development at its recently purchased oil and gas assets in South Texas via its wholly owned US subsidiary Modena Petroleum LLC.

The well was drilled and completed in February 2008 and designed to test the deeper mid-frio sands between 10,000 and 12,000depth.

The well flowed 4949 MCFPD and 23 BOPD, but the well ceased production after 18 days. It currently carries wellhead pressure of approximately 1800 psig of SITP, but bleeds to zero.

The company has determined that the initial development had encountered significant problems when drilling which led to well control issues. Control of these problems necessitated heavy drilling fluids which likely contributed to significant near- wellbore completion damage.

Anthony Hamilton, chairman, said the company believes there is a significant gas zone within this well bore with the 88 acres and 20 net feet of pay indicating a potential 2.6BCF of gas reserve.

Modena is currently completing detailed diagnostics with the objective to assess the current down hole conditions as well as tubing and packer integrity.

Once this has been ascertained the company will proceed to clean out, reperforate the well and stimulate the pay zone as necessary to get this well back into full production.

The company remains on target to achieve its objective of restoring production in three stages:

- 1,900 MCFPD within 90 Days of Completion
- 6,900 MCFPD within 180 days of completion
- 14,900 MCFPD within 12 months from continuous operations

Following reinstatement of the State track 1008 #1(st) production, the company believes that in the longer term it has up to 40 exploration targets to review while continuing to focus on the current 24 well production and development program.


http://www.proactiveinvestors.com.au/companies/news/9610/modena-resources-sees-potential-26bcf-gas-reserve-at-south-texas-well-9610.html