Garden hill29 Apr 2018 08:45
Location of the Garden Hill Field
As announced on 11 April 2013, a sustained production process has been established on the Well in GHF. As part of the process, which is still ongoing and has been designed and implemented to gather additional performance data, the Well has been flowed at varying rates and intervals as per the testing programme. In total, the Well has been flowed for a total of 214 hours since the sustained production process commenced in mid-March up until 17 May 2013. During this time, 3,099 barrels of fluid was produced with an average water cut of 44%, yielding 1,731 barrels of oil. As the Well continues to be flowed, and to clean up from the previous workover, there is potential that the water cut may reduce.
The Company is also pleased to announce that another sales route has been secured for its produced oil, which is currently being sold at a premium to WTI.
In addition, the Company has engaged an independent specialist production enhancement consultancy to advise on how the full potential of the Well can be unlocked. The Company is pleased to announce that, after a detailed review and visit to the GHF site by the consultants, it has been advised by the consultants that sustained flow is possible with the installation of the correct artificial lift ("AFL") solution, and that, in the short-term, the best AFL solution is the installation of a jet pump. The reservoir inflow, water cut, and gas to liquid ratio will ultimately determine how much continuous production is achievable, however these parameters are currently uncertain and will only be ascertained through continuous production.
The Company is also pleased to report that the same production enhancement consultancy has offered to farm-in to GHF and EL1116. The Company is currently assessing the proposal; however, this reinforces the Company's view of the potential of both GHF and EL1116.
The production data gathered to date continues to suggest there has been no reservoir pressure depletion and, in view of the result from the sustained production process, the Company believes it may be possible to book reserves on GHF.
Based on results from the Well to date, the Company is pleased to report that it is working to finalise a suitable drilling programme for another well in GHF and may, if appropriate and subject to securing regulatory approval, accelerate development of GHF by proceeding straight to a drilling programe. The Company would look to bring in an appropriate partner in due course with a view to implementing this programme. The original horizontal well report from Petra Physics Ltd. in May 2007 indicated that a suitably targeted well can produce at a range of 474 bopd to 5,523 bopd.
The Company will provide further updates as appropriate.
Alan Minty, CEO of Enegi Oil commented:
'We remain very encouraged by the performance of the well and the findings from the independent specialist production enhancement consultancy. We are
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