Stratum tested and flowed 36 deg API oil from the Poduri 5 well along with gas and condensate. The oil is similar in composition to the typical Moinesti oil. It is paraffinic but contains no asphaltene. The oil discovery is expected to be a substantial find surrounded by over a billion barrels of legacy oil production dating back to the 1870s. The structure extends beyond the current boundary of the 3D data. Additional 3D seismic will be conducted in 2016-2017 to fully map the oil structure. The well appeared to exhibit prolific flow capacity during the initial PLT t but could not be tested adequately due to completion equipment and surface facility constraints. A robust well testing program in planned to commence in Q4-2016. Subject to satisfactory well test performance two more appraisal wells will be drilled utilizing existing 3D data. Further development will require new 3D coverage.
Stratum spudded the Poduri 5 well as a Miocene Burdigalian target with a rig contracted with RAG Energy Drilling to continue its development drilling program. The well is targeting a flank bottom hole location and is expected to be the deepest Burdigalian well drilled to-date. The company currently has 3 Burdigalian wells and one Kliwa well on production.
Stratum Energy executed a debt facility agreement with a London based hedge fund for $54 million. Stratum can draw an additional $21 million subject to meeting certain debt covenants and production targets. The funding is earmarked for exiting a previous facility with Vitol and conducting development drilling in the Poduri gas-condensate field.