Garden Hill South (GHS) is an onshore prospect, covered by Petroleum Lease #2002-01, that was \'discovered\' by Hunt Oil in 1995, when the Port au Port #1 (PAP#1) well produced over 2,000 barrels per day. Two side-tracks were drilled from PAP#1, the second of which (ST#2) produced oil at the rate of 200 barrels per day during drill stem tests. Production tests from GHS, prior to re-entry in January 2007, produced over 22,000 barrels of oil. The oil that has been produced from GHS is very high quality (51° API) and will be able to generate premium prices on the oil markets. GHS covers an area of approximately 11 km2.

In January 2007, PDIP re-entered the PAP#1 ST#2 well. Upon re-entry, a series of tests, including a pressure build-up test, were performed to analyse the GHS reservoir in preparation for production. Analyses by independent consultants of the pressure build-up data indicated a minimum connect volume of between 4.5MMstb (4.5 million stock tank barrels) and 7MMstb (7 million stock tank barrels).

Following the pressure build-up test, the well was flowed to gather production data. After stable production of approximately 300 bpd the well flow became erratic. PDIP and its partners decided to shut the well in until a remediation plan could be prepared. A total of approximately 4,315 bbl of oil and 429,000 m3 of gas was produced after re-entry, before the well was temporarily suspended.

A rig is currently being constructed at site to drill a new sidetrack from the PAP#1 well.

The table below is a summary of PDIP’s contingent resources at Garden Hill South.

Contingent Resources Summary

    PDIP Net (100%)
Prospect / Lead   P90 P50 P10 Mean.
GHS onshore Oil in MMbo 2.0 5.1 12.8 6.5
GHS onshore Gas in Bcf 3.7 9.7 24.5 12.4

Areas of operation
Port au Port peninsular

Port au Port peninsula

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