RE: Clarity needed14 Feb 2019 09:05
Carlosan, I googled this:
REDEVELOPMENT PLANS
Zenith believes that this lack of maintenance and gradual dilapidation of field equipment is the principal cause of the decline in oil production and that these fields are far from reaching a stage of natural depletion, as demonstrated by the fact that the majority of wells produce without any artificial lifting but only for the natural pressure in the structure. This was confirmed by the recent Competent Person’s Report (CPR) which assessed 2P reserves of 33.4 MMbbl of oil net to Zenith (31/3/17), excluding the reserves impact of a potential, yet not certain, 5-years extension.
The REDPSA conditions state that Aran must achieve a production increase of 1.5 times from the 2015 average of 310 bbl/d within two years from the effective date of the 11/8/16, hence by 11/8/18. The quantum of improvement being a condition of the REDPSA, failure to deliver would invalidate it, under the licence terms. However, judging by current progress, this condition seems already within reach one year in advance.
In the period 2017-2020, Zenith plans to workover a total of 44 existing wells which are currently inactive or producing at rates of below 5 bbl/d to bring rates up to 10-15 bbl/d using improved technology, non-damaging fluids and optimised treatments, according to the following schedule: 10 wells (2017), 11 wells (2018), 15 wells (2019) and 8 wells (2020).
Zenith intends to drill 5 new wells in 2019 and 10 new wells each year until 2033, when the new drilling programme will be completed, i.e. a total of 145 new wells out of which 58 will be horizontal wells in the Mid-Eocene. As a result, Zenith expects to reach peak production level of 13,693 bbl/d in 2033
Gl
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