RE: News this week?16 Jan 2019 21:46
Ismaliq - Balcombe is supposedly the jewel in the crown. 1,600ft of exposure in horizontal well in KL4.
The Balcombe EWT isn’t going to happen overnight as you still need the Government bodies to review it and public consultation. Fortunately it’s WSCC, so should have a smoother process.
Angus may be working to a Cuadrilla timeline as the loan discount is rather hefty.
Nathalie Lieven QC, for Cuadrilla, told the judge that "every day, it costs Cuadrilla £94,000 to keep all that kit and equipment on site".
https://www.bbc.com/news/uk-england-lancashire-45833774
So in 12 weeks at £94,000 a day comes to circa £7.9 million just for the rental cost. This excludes all the products used down hole, day rates and potentially equipment operating costs.
That is a tremendous hit for any company and for zero return.
Cuadrilla also has time constraints for meeting licence requirements.
“The shale gas company, Cuadrilla, has less than a year to drill two wells and frack three under the terms of the planning permission at its site near Blackpool.”
https://drillordrop.com/2019/01/10/cuadrilla-focusses-on-single-shale-well-with-under-11-months-left-for-more-drilling-and-fracking/
So why the rush to get the Balcombe EWT started?
Balcombe is a horizontal well and with its slotted liner (pre-drilled holes) is exposed to +/- 1,600ft of Upper Kimmeridge Limestone (KL4). That’s 19 times more exposure than at Horse Hill who observed 901bopd from only 88ft.
The Kimmeridge at Balcombe is 25% thicker than at HH.
Angus observed flow rates of 3,000bopd and only reduced it as the well slugging due to exceeding the separator operating capacity and Vonks mentioned in a subsequent interview the size of production tubing was another cause.
“During the initial flow period, the well slugged at up to 3,000 barrels per day which had to be reduced as it exceeded separator operating capacity.”
http://www.angusenergy.co.uk/wp-content/uploads/2018/10/18.10.02-RNS_-Angus-Energy-Completes-7-Day-Well-Test-at-Balcombe.pdf
Is the slugging an easy fix? Yes. Change out production tubing for larger size diameter and utilise a larger separator.
Even with reduced pumping capacity they still observed 853/1,587bopd.
The other key issue raised in the original RNS regarding produced water has been resolved. What was thought to be formation water produced along with the oil is in fact drilling / completion fluid that seeped / injected into the well. This need to be pumped out before you get the higher flow rates. What goes in must come out ethos.
“The Balcombe Field Discovery is considered to be in the ‘sweet spot’ of England’s Weald Basin given the 568 metre thickness and highest maturity of the Kimmeridge Layers.
http://www.angusenergy.co.uk/wp-content/uploads/2018/01/Balcombe-Presentation.pdf
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