Oil & Gas

Golden Eagle

The Paradox Basin

The Paradox Basin is richly productive. Currently home to 171 oil and gas fields containing estimated recoverable reserves of one billion barrels of oil (BMbo), or six trillion cubic feet of gas (Tcf) equivalent. The potential for more hydrocarbon reserves is thus enormous. Over its history, the Paradox Basin has produced 500 million barrels of oil and 3.5 trillion cubic feet of gas. Even at current prices that equates to approximately US$57 billion that the area has already produced, with a similar amount again estimated still to be recoverable.

Most encouragingly, the Golden Eagle Prospect has been described as a geological ‘look-alike’ to the largest producing fields in the Paradox Basin. It is the only documented geological structure in the Paradox Basin that is similar in terms of structural style and size. These fields run along the same northern/southern producing trend plain, notably, the Lisbon Field (which is 64 km to the projects south and has produced 50 million barrels of oil and 780 billion cubic feet of gas), the Greater Aneth Field (150 km south with production of 385 million barrels of oil.

Paradox Basin #1 Well

Paradox Basin #1, which tested the Golden Eagle Structure, has been acknowledged as the most significant recent well in the Paradox Basin. The Golden Eagle Structure is located in Grand County, Utah along the Paradox Fold and Fault belt and is on structural trend with the Big Indian, Lisbon, Lightning Draw, Little Valley and Lisbon South Fields.

The primary target, the Mississippian Leadville Limestone is an interval that is recognised as the principle gas target in the basin having produced more than 53 million barrels of oil/condensate and 845 Bcf of gas. The Leadville Limestone is recognised to have enormous potential for more hydrocarbon reserves in the Paradox Basin adding to the total of 1.2 Tcf of gas and 500 million barrels of oil already recovered from numerous objective levels within the basin.

Paradox Basin #1 was drilled to 16,471’ (5020m) reaching total depth in the Cambrian Lynch Dolomite. The well produced gas on test and is currently suspended as a future producer. Strong gas shows are present in 31 zones over a 9000’ interval, including seven significant zones within Pennsylvanian and Mississippian sediments.

Independent log analysis of Paradox Basin #1 confirms movable hydrocarbons are present at numerous levels.

Mechanical issues associated with the casing hanger, caused by the contractor, resulted in the requirement to ream cement for 4 months. During which time, the Cane Creek and Pinkerton Trail zones, which had originally demonstrated favourable reservoir quality, were exposed to salt and over pressured drilling fluids which is likely to have damaged the well.

The Barker Creek gas zone at 12,562’ had persistent shows for a further 1000’, presumably implying good reservoir, however as the zone was not cemented no valid test was possible. Valid testing of the primary objective Leadville Limestone was also prevented due to damage to the liner and lack of isolation from the overlying salt.

Paradox Basin #2 Gas Well, Utah USA

Following completion of site works a spud rig will drill the surface hole, after which the well will be drilled to a depth of 16,000’ using a larger rig. Paradox Basin #2 is located 1 mile south–south-west of the original Paradox Basin #1 wildcat well. The well is located higher on the Golden Eagle Structure. The prognosticated top for the Cane Creek Formation is some 800’ higher than Paradox Basin #1. This more crestal position places the well closer to the bounding fault and in a zone of higher flexure. Faulting and flexure should contribute to increased vuggy fracture porosity as observed in the on-trend Lisbon Field, porosity and permeability is associated with dissolution along fractures and faults.

Paradox Basin #2 will be completed with a 4½” production casing prior to testing. Should Paradox Basin #2 demonstrate commercial flow rates the well will be tied in as a gas producer.