Buccaneer Energy has announced that its Allar 1 well, drilled in the Fouke area of the Pine Mills Field in Texas, US, did not find an accumulation of commercial hydrocarbons.
The Australia-based oil and gas company completed drilling at the well, reaching a total depth of 5,767ft.
This well encountered a shaly oil sand sequence in the second sub-Clarksville unit at a depth of 5,616ft, which did not contain commercial hydrocarbon reserves.
Buccaneer Energy plans to plug and abandon the well and release the drilling rig to return to the Pine Mills Field to drill the Fouke 4 well.
The drilling of Allar 1 was part of the company’s broader strategy to increase production and develop its assets in the Pine Mills Field.
Buccaneer Energy CEO Paul Welch said: “The results of this well are disappointing; however, the geologic targets and most importantly the bounding fault came in on prognosis.
“The sand section thinning as it approached the fault was a phenomenon not observed in previous offset wells in the Fouke area and provides valuable subsurface data that will be incorporated into the geological model for the field and future drilling plans.
“The bounding fault follows a north-west trajectory, which permits the Fouke 4 well to be located at a similar distance from the fault as Fouke 1; potentially within a thicker sand section of the sub-Clarksville.”
Buccaneer holds a 32.5% working interest in the Allar 1 well, which was previously known as Fouke 3.
The company started drilling the well after completing the drilling pad construction, with the entire process, including evaluation, taking up to two weeks.
Alongside drilling, Buccaneer has raised around £500,000 ($675,000) through a subscription and placement of nearly three billion shares at a placing price of 0.017p per share.
Certain suppliers have chosen to accept shares as payment for services, resulting in the issuance of an additional 250 million ordinary shares.
The company intends to use the proceeds to fund its share of a Bitcoin mining operation in the Fouke area and is seeking a suitable partner for the project.
If the company does not secure a suitable partner, it will proceed with the set-up of a company-owned Bitcoin mining operation.
Welch added: “Although Allar 1 was considered a low-risk development well, subsurface outcomes can vary even within proven structures, and the data gathered here will directly inform and de-risk the upcoming Fouke 4 location.
“The company continues to generate revenue from existing wells in the Fouke area and wider Pine Mills field as we continue our strategy to increase production and optimise value from the Pine Mills Field.
