Melbourne, Sep 9, 2008 AEST (ABN Newswire) - Marion Energy Limited (ASX:MAE)(PINK:MAEJF) advises that the Oman 10‐19 well, the first well of the recently announced infill drilling program at Clear Creek, Utah (ASX Announcements of 13 and 26 August, 2008) has been spudded and drilling is now in progress. Further announcements will be made when significant target milestones are achieved.
This well is a directionally drilled well which will be drilled to an approximate depth of 5700 feet and will test the Ferron sandstone reservoir as its primary target. This well is the first of a planned three well infill drilling program in the central part of the Clear Creek Unit acreage where several of the original wells were drilled in the 1950's and 1960's. A total of 17 wells were drilled in the Clear Creek Unit during that period and produced 126 Bcf of gas in total with well production rates averaging in excess of 3 million cubic feet of gas per day. This well will be the first well drilled in this part of the Unit by the Company.
The Company believes that because the original wells were drilled on 1000 acre spacing units substantial reserves are yet to be recovered from this part of the Unit. This drilling program will help to quantify the extent of reserves yet to be recovered.
Marion is currently in the process of undertaking an independent update of its reserves and it is important to drill wells in this part of the Unit to establish both the reserves to be recovered and importantly, to also better define the level of proved (1P) reserves in the Unit. Marion's proved and probable (2P) reserves at Clear Creek currently stand at 236 Bcf of gas. This program is planned to increase the 1P reserves by upgrading some of the 2P reserves to 1P and to also increase the aggregate reserves attributable to the Unit.
Contact
For further information contact:
North American Contact:
Mr Jeff Clarke
Managing Director & CEO
Ph: +1-214-244-7690
Email: jclarke@marionenergy.com
Australian Contact:
Mr Peter Collery
Executive Director and Company Secretary
Ph: +61-3-8862-6466
Email: peter@marionenergy.com.au
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