8th May 2019 11:55
LONDON (Alliance News) - TomCo Energy PLC on Wednesday reported the presence of water at some wells earmarked for field testing this summer.
TomCo has already drilled three test wells, the Monitor wells, at the Holliday block in Utah.
TomCo drilled MW1 to 180 feet, MW2 to 130 feet, and MW3 to 100 feet, with the first going through the Mohagany oil zone, the second going into it and the third above it.
The Mahogany zone, from which TomCo hopes to produce oil, sits between 100 feet and 170 feet from the surface.
Initial indications suggest "minor" amounts of water above the zone at around 67 feet deep in the second and third wells, with inflow rates being low. The first well found groundwater only after going into the zone.
TomCo will monitor water levels, and said there is abnormally high water due to snowfall over the winter months.
The company had already planned to include casing to a depth of 100 feet which should keep out the water, and as a result it can still go ahead as planned with the field test.
TomCo is to start site preparation during June, and then start testing, hoping for first oil within three weeks.
Chief Executive John Potter said: "Whilst water has been encountered in the Monitor wells, the results suggest this is primarily located above the target Mahogany zone. The wells designs for the field test already include casing, and accordingly, we believe the presence of water should not be an issue."
"Together with the improvements identified from the test work completed in 2018, I am very confident that our goals of recovering oil and then developing significant production data, are going to be achieved this summer and I look forward to keeping shareholders updated as the field test progresses."
TomCo shares were 7.6% lower on Wednesday morning at 2.50 pence each.
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