The much anticipated drilling of Magnum Gas & Power Ltd’s (ASX: MPE) company changing Tulainyo 2-7 gas appraisal well is a step closer with the rig now moving to site.
The Ensign Rig 587 is currently mobilising to the drill site in the Sacramento Gas Basin in California and will commence operations shortly.
The well is planned to a total, measured depth of approximately 1,700 metres (5,600 feet) with drilling operations expected to take less than one month to complete.
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Current estimates are that Tulainyo could contain up to six trillion cubic feet (tcf) of gas.
The Tulainyo joint venture includes operator California Resources Production Corporation, a subsidiary of a NYSE-listed company that is one of California’s largest oil and gas production companies and Cirque Resources LP, a private company based in Denver, Colorado.
The project is located near extensive gas reticulation infrastructure and a large gas market.
The previous drilling programme undertaken by CRC in late 2014 encountered multiple, stacked gas bearing conventional reservoirs and the conventional word is also an important point to remember when it comes to commercialising any drilling successes.
Following the farm-in well Magnu will have the right to 20% net in Tulainyo.