RE: MATD20 Dec 2024 19:18
As previously reported, the Heron-1 well was brought onstream on 24 October and it continues to produce oil to surface under natural flow without the need for pumping. The well is producing with higher amounts of associated gas and at higher pressures than are generally observed in the basin giving the well high initial flow potential.
Rate tests have achieved flow rates similar to, and in some tests, higher than the maximum 821 barrels of oil per day (bopd) rate recorded during the well testing operations in 2019.
Here is reason for flowing at current rate, not higher, high gas pressures.
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Given the high pressures observed at surface, the flow rate is being monitored carefully to ensure that casing and production tubing pressures remain within safety tolerances and production is currently choked back to a range between 200 and 300 bpd. Whilst this is in line with our pre-production aspiration for an initial stabilised rate, the indications of sustained potential for the well to produce at higher rates are under review, to see if modifications at surface can be made to increase the stabilised flow rate.
More approvals regulator approvals before export paper work can be progressed ?
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Regular transfer of oil to the TA-1 production facilities in Block XIX is ongoing. Meanwhile, all the commercial terms have now been agreed and the final wording of the Cooperation Agreement is being prepared to include details of exactly how the produced volumes will be offloaded, measured and confirmed by the relevant parties. Once agreed with the Block XIX operator the Cooperation Agreement will be presented to the industry regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) for their approval. The Company is pushing to expedite these final steps after which export paperwork will be prepared and sales of Block XX oil to the buyer in China will commence.
looks like they are storing production, is there enough capacity to cover production until export starts?
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In the meantime, large storage capacity is available in Block XIX so Block XX production can continue uninterrupted.
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