Torchlight Details Oil and Gas Potential from WolfPenn Well

Torchlight Energy Resources Inc. has measured substantial initial potential oil and gas hydrocarbon recoveries from the recently drilled and completed Cactus A35 #1H well.

The Upper Pennsylvanian Silt (WolfPenn), a new field discovery made by Torchlight in its Orogrande Basin Project, is a hydrocarbon rich formation with over 600 ft. of thickness. The petrophysics and thermal maturities strongly suggested an oil-rich reservoir with a significant gas component.

However, the first horizontal well drilled into this zone, the Founders A25 #1H well, encountered very high gas rates with almost no liquid hydrocarbons. Gas rates reached over 2 MMCFPD, with a stabilized rate of 1.2 MMCFPD, from a small 1,000 ft. frac interval. Extrapolated to a 10,000-ft. lateral, this well would be stronger than most Cotton Valley gas wells, and approaching many Haynesville gas wells, according to the company.

Following the Wolfpenn discovery, Torchlight hired a team of petroleum scientists, led by Mike Zebrowski, to examine the incongruous results of the gas well from a formation that clearly appeared liquids-rich. After significant research, Zebrowski and team concluded that the Wolfpenn displayed a dual porosity system similar to both the Wolfbone and Wolfberry Plays of the Permian Basin.

Early wells in the western portion of Wolfbone encountered the same dichotomy of results, with wells making inordinately high gas-to-liquids ratio compared to expectations created by the petrophysics. Many of the early Wolfbone operators condemned large portions of western Reeves County and eastern Culberson County, based on the incorrect analysis of the area being primarily gas productive only.

A few operators, including EOG, Concho, and Cimarex, realized that the solution to this problem was a much larger frac that could penetrate both porosity systems. The results have been spectacular in not only liberating a large liquid hydrocarbon component, but also significantly increasing gas rates in their wells, the company said.

Based on Zebrowski’s recommendations, Torchlight drilled a short lateral into the Wolfpenn formation in their Cactus A35 #1H well. The company made the decision to only perforate a 100 ft. interval and put a significantly larger frac on this well. Torchlight used 3,000 lb.-per-ft. of sand instead of the 2,000 lb.-per-ft. used on the Founders A25 #1H gas well. The injection rates were increased from 60 barrels/min. to over 80 barrels/min. As historically seen in the western Wolfbone wells, the results have proved the potential for high volumes of oil production.

“While these results are extremely compelling,” stated Greg McCabe, Torchlight’s chairman, “we are very excited about next steps to further evaluate the Cactus well. With the current production system, Torchlight is unable to significantly reduce the fluid level without causing mechanical issues to the pump design. We are in the process of changing our production design to greatly reduce the hydrostatic pressure by reducing fluid level to as close to 90 TVD as possible. By doing so, we expect the rates of both oil and gas to increase on this well. We look forward to releasing the results of our additional testing in the very near future. With the play consisting of 134,000 acres all under one D&D unit with University Lands, having oil and gas present in the hydrocarbon system is a major development for Torchlight and its shareholders.”