WEST PERTH, AUSTRALIA--(Marketwired - Dec 9, 2013) - US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to advise that drilling operations have successfully concluded at the Sydney #2 well at its Permian Basin Fairway Project, West Texas, with the Fusselman exceeding expectations.
The Fusselman Formation was intersected 13 metres (42 feet) updip to that of the nearby Sydney #1 oil well. Preliminary log analysis further confirms that the Fusselman in the Sydney #2 well is significantly thicker and more porous than at the Sydney #1 well.
Target's Managing Director Laurence Roe commented: "This looks like an excellent well and could just be our best producer yet.
"The Fusselman in Sydney #2 is substantially updip to the Sydney #1 -- our best Fusselman well to date -- and is thicker with better porosity and permeability.
"We also noticed good oil and gas shows whilst drilling through the Wolfberry section.
"All the indications for this well are very positive. We will continue our review of the log data and proceed to run production casing; we plan to complete Sydney #2 for production early in the new year."
The Sydney #2 well reached its Total Depth at 3,040.4 metres (9,975 feet) on 7 December 2013. Wireline log data is presently being analysed. The well is located approximately 800 metres east of the Sydney #1 well.
Sydney #2 Operations Update
Target WI: 60%
Well Type: Step-out / Appraisal (Oil)
Location: Glasscock Co, Texas
Lease Description: NW/4 & E/2 S 188 Block 29 A-170 W&NW Survey
All reported depths are measured below the Rotary Table (RT) on the rig floor.
8:00 pm 8/12/13 (Western Aust Standard Time) /
6:00 am 8/12/13 (USA Central Standard Time)
3,040.4m (9,975ft) (Total Depth)
Run surface casing to 343m (1,425 ft). Drill to 3,040m (9,975 ft). Run Wireline Logs. Prepare to run casing.
NOTE: In accordance with ASX Listing Rules, any hydrocarbon reserves and/or drilling update information in this report has been reviewed and signed off by Mr. Laurence Roe, B.Sc, Managing Director of Target Energy, who is a member of the Society of Exploration Geophysicists and has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears.