Further completion efforts have been underway since September. These operations included two separate "slick water" fracture stimulations (frac's). One on the Dakota "C" sand and another on the Mancos Shale. Both frac jobs were partially successful and resulted in establishing the potential of flowing limited quantities of gas from each zone. The plan is to combine production from the Dakota/Ceder Mountain/Dakota "C" sand and the Mancos and connect the well to the pipeline.
In addition to the deeper gas objectives, the well showed heavy oil/tar from the Castlegate formation. During drilling samples recovered and geochemically analyzed. The analysis, called Oil finger-printing, indicated that the samples did not undergo any biodegradation, indicating the potential for an oil accumulation.
Moon Canyon 2
The producing zone in the Jurassic, Brushy Basin formation has significantly declined in pressure and started producing water. This zone was isolated by a retrievable plug and a shallower zone in the Cretaceous Dakota "B" sand was perforated and frac'd. This zone initially produced gas at a rate of approximately 500 mcf/d and has presently stabilized at a rate of 200 mcf/d, with some water.
Moon Canyon 1
A review of the logs indicated possible untested potential in the Dakota Buckhorn formation. This zone was perforated and resulted in no commercial gas and it was determined that a frac was not warranted.
The company is continuing to evaluate the potential of any additional work in this well.