RE: Solo EOY Results and statement1 Sep 2020 11:41
Also includes an update on KN1, some already known but a few new snippets, and weakly concealed frustration:
During 2019, as a result of natural depletion and fluid build-up [in the well], the Kiliwani North-1 well has not produced. In late 2018 the operator conducted analysis which concluded that the sub-surface safety valve ("SSSV") had become stuck in the closed position. Schlumberger was mobilised to location and the SSSV was repaired. During the operation the well was fully opened, and test gas flowed to the plant for a short period. The Joint Venture believes that there is a fluid column in the well and is analysing the operational and testing data. The execution of the preliminary remedial work resulted in temporary gas flow to the gas facility.
The well has produced approximately 6.4 bcf of gas to date.
The Joint Venture has been exploring various options to reinstate production from the well. The Operator has prepared, and is awaiting approval for, a remedial work programme intended to establish fluid levels in the well bore, measure reservoir pressure and to unload fluid using foam treatment technology.
If successful, this operation is expected to re-establish gas production from the well. The Joint Venture has identified appropriate equipment and will begin sourcing as soon as approvals have been received. The Joint Venture has been awaiting final approvals for a significant period of time and whilst the Joint Venture is reassured that the unloading operation can be carried out, there is no firm timeline on when the approvals will be granted which would allow the operation carried out. The Joint Venture estimates that once approvals are in place the work could be carried out within a 3 to 6 month time period subject to travel restrictions associated with the ongoing Corona virus pandemic being lifted.
Following a reinterpretation of the existing seismic, the Joint Venture identified the Kiliwani South prospect, estimated by the Operator to contain 57 bcf unrisked mean GIIP. It is envisaged that as part of a larger 3D seismic programme, most of the Kiliwani North development licence will be covered by 3D seismic. This would then allow for the Kiliwani South prospect to be progressed to drill ready status and to target the remaining potential with the Kiliwani North structure.
In preparation for acquiring the 3D seismic over the Kiliwani North Development Licence, the Joint Venture reprocessed certain existing 2D seismic data. In combination with a fresh look at the regional data, remapping based on the reprocessed seismic data has identified multiple structural and stratigraphic leads across the licence which are ideally located in shallow waters and in close proximity to existing offtake infrastructure, meaning that any discovery could be rapidly monetised with relatively low-cost drilling and tie-backs.
A resource report by LR Senergy, completed in May 2015, attributed approximat
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