Prominence Energy Ltd will be chasing a multi-million barrel payday after getting the green light to drill its first ‘Bowsprit’ oil seeking well in the US state of Louisiana’s shallow inland waters.
With oil prices expected to remain high for the foreseeable future, the explorer is about to kick off 2600 meters-plus of well-drilling into a series of reservoirs, thought to potentially hold a recoverable oil reserve of up to 4.1 million barrels.
The company said it rates its ultimate success, drilling into aged sands above a field developed by Shell in the 1960s, leading to a steady production flow despite the time’s limited technology.
“It is exciting to be drilling and appraising the upside potential of Bowsprit,” chief executive and managing director Alexander Parks said.
“Any one of sands I, IV(T2), V, VI and VII have a realistic chance of containing a commercial volume of oil, and success in any sand in this well could be transformational for PRM”
Following drilling, Prominence plans to suspend the well at a cased hole depth of around 900m, using gathered data to design a horizontal production section.
The company’s Australian Stock Exchange-listed shares had risen 8.33 per cent today, trading at 1.3c (3:33pm GMT+8 hours).