RE: Expect a bounce today.21 Nov 2024 10:03
The AIM-traded firm said Heron-1 was producing oil at an initial rate of 200 to 300 barrels per day, with production choked back due to high surface pressures resulting from an unexpectedly high amount of associated gas, which improves flow potential but requires careful monitoring to maintain safety standards.
Tests indicated that the well could sustain higher flow rates, potentially exceeding the 821 daily barrels achieved in 2019, subject to adjustments to surface infrastructure.
Oil from Heron-1 was being transported to the neighbouring Block XIX TA-1 facility for storage while the final details of a cooperation agreement with Block XIX's operator were completed.
Once finalised and approved by Mongolia's Mineral Resources and Petroleum Authority (MRPAM), the export paperwork would allow for the sale of Block XX crude to buyers in China.