(MENAFN- ProactiveInvestors - Australia) Mako Hydrocarbons' (ASX: MKE) first Duvernay well in Alberta has reached total depth and operator Black Swan Energy will complete a comprehensive core analysis in the next three months.
Thereafter, Black Swan will decide whether to drill a horizontal leg from this well in the Rimbey region.
While drilling to 3,318 metres was carried out at no cost to Mako, it retains a 10% working interest in the well and is entitled to receive the details of all analysis completed on the Duvernay core and drilling samples, and is entitled to confidential well logs taken during drilling operations.
Initial indications from well logs run across the shallower Rock Creek sandstone to assist in evaluating its hydrocarbon potential were also encouraging.
At the Provost project, Mako is currently reconfiguring a second water disposal well.
The original disposal well failed a packer isolation test and has been temporarily taken off-line until certain regulatory and industry approvals are received and remedies completed.
Until water disposal capacity has been re-established, field production is temporarily restricted at about 100 barrels of oil per day to minimise third party disposal costs.
Production levels should be restored by mid-January 2013 to about 150 barrels of oil per day once field operations are completed and regulatory approvals have been received for the second disposal well.
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