Timeline of Events
Option Agreement - Oct 2007
As October 16th 2007 New Shoshoni Ventures Ltd. entered into an agreement with ABI Resources Ltd. of Calgary Alberta (the "Farmor"), whereby the Company may earn a 65% interest in up to four contiguous Sections prospective for the discovery of natural gas. The properties are located in the Sunrise area of Northern British Columbia. ABI currently holds a 100% pre-farmout interest in these lands under Crown Licenses.
In order to earn its interest in each section, New Shoshoni Ventures Ltd. must pay 100% of the costs to drill and complete one test well per section. The initial test well is to be drilled to a maximum depth of 1500 meters or 15 meters into the Gething Formation, whichever occurs first. Subsequent wells are to be drilled to the depth of the deepest economic pay zone found in the initial test well. The initial test well must be spudded by March 31, 2008, and the remaining work required to earn the full option must be completed by March 31, 2009. Any sections not drilled by that time would revert back to the Farmor.
NSV Becomes an Oil & Gas Operator in the Province of British Columbia. - Feb 2008
The Company has applied for a drilling license for a well located at 16-25-79-17 W6M in the Sunrise gas field in North Eastern British Columbia. Building on this location will start the week of February 18th 2008 dependent on equipment availability. The first well will spud when the drilling rig that has been contracted finishes its current project. This is expected in the last week of February 2008.
Drilling the first location is expected to take 8-10 days to a total target depth of 1260 meters. Following which it will be logged and evaluated for natural gas hydrocarbons in the Bluesky, Cadotte Sand and the Dunvegan Sand formations.
The Company has a rolling option on three adjoining sections of land that may be drilled if hydrocarbons are encountered in the first location.
Natural Gas Exploration Well Spudded - Mar 2008
New Shoshoni Ventures Ltd. (the Company) is please to announce that Quintera Drill Rig number 3 has spudded at 02:45 hours on March 6, 2008 on the 16-25-79-17 W6M location in the Sunrise gas field located in Northeastern British Columba.
Drilling of this well is expected to be completed within 7 days, after which time the well will be logged and evaluated for natural gas hydrocarbons in the Bluesky, Gething, Cadotte Sand, and the Dunvegan Sand formations.
Initial Natural Gas Exploration Well Encounters Hydrocarbons - Mar 2008
New Shoshoni Ventures Ltd. is pleased to announce that it has completed drilling of the 16-25-79-17 W6M well located in the Sunrise Natural Gas Field. Drilling was completed on March 11, 2008 at 21:00 hours. The well was drilled to a depth of 1285 meters and was subsequently logged and evaluated for hydrocarbon shows. The logs indicated hydrocarbons to be present in both the Paddy and Bluesky formations.
The Paddy formation was contacted at 775 metres and showed 4.5 meters of crossover, the Bluesky was encountered at 1240.5 meters, showing 7.5 meters of crossover, respectively, on the Compensated Neutron PEL Density Log. After logging was completed, the well was cased as a potential Bluesky and Paddy natural gas well.
New Shoshoni Ventures Ltd. expects to complete both zones and production test the well when a Service Rig and Fracing Unit can be contracted and moved on to the location. This is anticipated to take place during the month of April. Well test data, including flow rates, will be announced when available.
New Shoshoni Ventures Ltd. holds an option to earn a 65% interest (100% before pay-back) in a total of four sections in the Sunrise Region by drilling one exploration well per section. The company expects to drill an initial exploration well on each of the remaining three sections over the summer of 2008 to take advantage of the OGC summer drilling credits and in order to earn the remainder of its interest in these sections. Since the initial exploration well has encountered hydrocarbons at the Bluesky level, each additional exploration well will be drilled to the depth of the Bluesky formation. Maximum allowable well spacing in this region is 4 wells per section
Company Mobilizes Perforating and Production Testing Equipment - Apr 2008
New Shoshoni Ventures Ltd. is pleased to announce that it has mobilized perforation and production testing equipment to the 16-25-79-17 WSM well located in the Sunrise natural gas field.
New Shoshoni Ventures Ltd will be perforating the Paddy, Cadotte and Bluesky formations. Following perforation production flow testing will take place. Preliminary test results will be available by the middle of April.
The Company holds an option to earn a 65% interest (100% before pay-back) in a total of four sections in the Sunrise Region by drilling one exploration well per section. The company expects to drill an initial exploration well on each of the remaining three sections over the summer of 2008 to take advantage of the OGC summer drilling credits and in order to earn the remainder of its interest in these sections. Since the initial exploration well has encountered hydrocarbons at the Bluesky level, each additional exploration well will be drilled to the depth of the Bluesky formation. Maximum allowable well spacing in this region is 4 wells per section.
Preliminary Production Testing Completed at Sunrise Well - Apr 2008
New Shoshoni Ventures Ltd. is pleased to announce that it has completed the perforating and preliminary production testing of the of the 16-25-79-17 W6M well located in the Sunrise Natural Gas Field in North Eastern British Columbia. The Company is pleased with the results of the preliminary production testing of this well.
Burnable gas was encountered when the well was swabbed while minimal amounts of fluids appeared to be present. This indicates that the formations are gas bearing with very minimal amounts of formation water being produced when swabbed. The well will be fraced and production flow testing will take place as soon as the seasonal road bans have been lifted by the Government of British Columbia Ministry of Transportation. The 16-25-79-17 W6M well has come in under budget for drilling.
Natural Gas Exploration Well Completion - Jun 2008
New Shoshoni Ventures Ltd. is pleased to announce that completion equipment is expected to be deployed to the 16-24-79-17 W6M Sunrise well, located in North Eastern British Columbia, by June 14, 2008.
New Shoshoni Ventures Ltd spudded the well on March 6, 2008 and after evaluation of the logs and preliminary production testing, the Company will gas frac the Dunvegan Sand, Paddy Sand and the Cadotte Sand. All are low pressure gas formations that are known to produce high volumes of gas after fracing.
New Shoshoni Ventures Ltd will be fracing the formations with Liquefied Petroleum Gas ("LPG"). The unique properties of the LPG fracturing process results in significant savings on material expenses and fracture clean up. The LPG used in the process is highly soluble into the formation, resulting in less potential damage to the formations than conventional hydraulic fracturing. After fracing has taken place on the Sunrise well, the Company will production test the Dunvegan Sand, Paddy Sand and Cadotte Sand. Production test results are expected to be available by June 21, 2008.
Natural Gas Exploration Well Update - Jul 2008
New Shoshoni Ventures Ltd. has received a Completion Report in respect of its Sunrise natural gas well, 16-25-79-17 W6M, located in Northeastern British Columbia. This well, which was spudded March 6, 2008, has been classified as a potential Paddy Gas Well.
Operations on the well have been suspended awaiting recorder information, which is expected to be available by mid August 2008. Two 5,000 ton propane fracs have been completed on the Paddy formation at the interval from 785-790 metres. Production testing undertaken after the first frac showed formation damage.
Recorders were left in the hole from June 18, 2008 until July 17th 2008, at which time formation pressure had built up to 4373 kPA(g). A second 5,000 ton propane frac was pumped into the Paddy formation on July 20, 2008. A fresh water leak occurred from the shallower Dunvegan formation either from malfunction of the packer or the on/off connection resulting in fresh water entering and damaging the water sensitive Paddy formation.
Although mechanical problems were encountered while fracing, the Company was pleased to find that the pressures on this well are comparable to the pressures of the producing gas field located approximately 3 miles from the Company's 16-25-79-17 W6M location, which indicates the two fields are connected. Once the recorder data is available, the company will be able to assess the water damage and consider which potential remedy may offer the most effective repair to the formation.
Sunrise Natural Gas Field
The Sunrise Natural Gas Field, located in Northeastern British Columbia, is known to host commercial quantities of hydrocarbons. Production data from other operators in the area indicates that both the Paddy and Bluesky, as well as other formations, produce in commercial quantities. Infrastructure related to exploration and production is excellent in the region. Companies with production in the Sunrise area include Crescent Point, Daylight Energy, Encana, GNP Oil and Gas, Pegasus Oil and Gas Inc, Petro-Canada, Pienza Petroleum Inc, and Terra Energy Corp.
A gathering system for natural gas is in place nearby. Access to the properties is excellent, being located on farm land which has very limited relief.
The Alaska Highway, a major arterial route in the region, and the City of Dawson Creek are nearby. |
