During the December 2017 quarter, Indago Energy acquired ~1,450 acres in the Illinois Basin in western Kentucky targeting the oil sands in the Upper Mississippian Big Clifty Sandstone. The Company has targeted the Big Clifty Sandstone due to its well documented substantial heavy oil resources as well as secondary objectives including five other sandstones which have proven to be hydrocarbon bearing.
Previous operators have drilled dozens of wells in the vicinity including approximately over 10 wells in INK’s leased acreage. The information from these wells has demonstrated an oil saturated reservoir approximately 12-20 metres thick at a depth range of between 125-215 metres.
Based on previous published results of more than 2,000 core samples from this region on the Kentucky Geological Survey website, the target zone has reported reservoir properties including average porosities of 15.5%, average permeability of 192 millidarcies, oil saturation from 32-45% and an oil gravity of 10 API.
INK has submitted these historical results and all available well logs to an independent resource assessor for assessment including volumetric analysis to verify published information.
The Company will also design a well programme for the first half of 2018 in order to determine whether its key product, MultiFlow, will be able to maintain the oil in a liquid state from the reservoir to the well head and thus enable the oil to be pumped using conventional equipment.
While detailed costings for a new well have not been completed, it is anticipated to be ~US$100,000/well without fracking.
Proprietary 3D seismic survey targeting the Wilcox, Austin Chalk and Eagle Ford formations;
major phase oil, with some natural gas production.
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