This story was corrected May 8.
Neon Energy Ltd., Perth, is preparing to spud the Paloma Deep-2 well in Kern County, Calif., to evaluate the areal extent of the zones of interest encountered in Paloma Deep-1 and to further evaluate in an uncompromised wellbore the Lower Stevens/Fruitvale section that tested gas-condensate.
The Lower Stevens/Fruitvale tested at 1.9 MMcfd of gas and 226 b/d of condensate, natural, before the test ceased prematurely due to downhole mechanical difficulties in Paloma Deep-1 (OGJ Online, Jan. 11, 2012). A shallower Lower Stevens sand interval flowed oil at uneconomic rates due to poor quality reservoir.
A jet pump has been installed after acid treatment of an interval in the Lower Antelope shale member of Miocene Monterey shale, from which Neon recovered 45 bbl of 26° gravity oil on a swab test. The jet pump initially returned acid and completion fluids as the vertical well began to clean up.
Neon said it will investigate whether modern stimulation techniques and horizontal drilling might accelerate recovery from the Lower Antelope. Four other zones of interest remain to be tested in the 13,320-ft well.