Calgary-based TG World Energy Corp. dropped its participation in two North Slope exploration wells after a production test on the first well drilled, Sak River 1-A, showed mostly water production, TG World said in a March 10 press release.

Two other partners, Alaska Venture Capital Group of Anchorage and Ramshorn Investments of .Houston, are staying with the project.

Brooks Range plans to conduct another test to see if the water-producing section of reservoir can be separated so the well will produce more oil, according to Jim Winegarner, vice president of the company. Brooks Range is the operating subsidiary of Alaska Venture Capital Group.

Drilling continues, meanwhile, on a second exploration well, North Shore No. 3. TG World pulled its financing from that well also, but the project is continuing with two partners, Winegarner said.

Both wells are a few miles north of the Prudhoe Bay field. Drilling was completed on Sak River 1-A with indications of fluids in the reservoir, but production tests conducted March 5 and 6 showed the well producing 1,100 barrels of oil over 24 hours but with 97 percent water.

The Nabors Drilling Co. rig used on Sak River 1-A has been moved to a nearby location to drill North Shore No. 3. In its press release, TG World Energy said it would not participate in that well, but would retain its interest in the North Shore No. 1 well nearby that was drilled two years ago, and which found a small oil deposit that is not commercial unless additional oil is found.

TG World Energy said it will retain its interest in the North Tarn prospect west of the Kuparuk River field, in partnership with AVCG and Ramshorn Investments, but that an exploration well planned there during the 2010 winter season will instead be drilled in 2011.