13th December25 Feb 2020 09:30
Bored at desk so read this again from 13th Dec....
The heels of the 205/21a-6 well ("6 Well") and 205-21a-7Z well ("7Z Well") are only 350 metres apart. Data gathered thus far indicates immediate and strong pressure communication between the wells, suggesting that together they act as a single well. Furthermore, the Company believes that only approximately 50-60 metres of each 1 kilometre wellbore is contributing to production. Both wells are currently drawing on only a small section of the reservoir. Since late October, Hurricane has been carrying out individual flow tests to establish the optimum combined flow rate from the two wells under these conditions, and to assess individual well fluid dynamics. These results will refine understanding of reservoir performance without the impact of interference from the other well.
The 6 Well is currently flowing individually at approximately 14,700 barrels of oil per day with minimal water cut. In a prior individual well test, the 7Z Well flowed at approximately 9,400 barrels of oil per day with a stable water cut within a range of between 25-30%. These rates were achieved on natural flow. In both cases, the bottom hole pressure showed minimal decline following an initial stabilisation period, giving management confidence in the long-term productivity of these wells and the Lancaster field. The productivity performance of each well on an individual basis is in excess of the Company's pre-start-up expectations.
The Company is confident that the water cut observed is related to perched/stranded water, based on temperature data, lack of rate-dependency, and water production behaviour after shut-in periods.
Production will continue from the 6 Well on a standalone basis until late January, at which point both wells will be flowed concurrently. Results from the tests will be presented at the Company's Q1 2020 Capital Markets Day. The Company has previously outlined that it will take six to twelve months of steady state production before it is able to confirm its reservoir model and continues to see this timeline as an appropriate horizon.
Notwithstanding the instant communication between the two wells, and that the wells are effectively acting as a single well bore, the bottom hole pressure response observed to date gives the Company sufficient confidence to reiterate 2020 guidance of 20,000 barrels of oil per day, before operational downtime. This will be kept under review as the data acquisition programme continues. Facilities availability for 2020 is expected to be 90% before any shut-ins, which may be required for tie-ins or debottlenecking.
ONLY a small part of the reservoir and only minimal wellbore contact...
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