RE: From Tennyson Research Note (14th Dec)14 Dec 2023 13:26
Recovery, alongside oil production, commenced at higher rates, but have since declined to a stabilised level of around 40 bopd. This is far below the unrestricted potential of the well (calculated using known reservoir and fluid characteristics) of 900 bopd, and illustrates the fact that heavy drilling mud is still restricting the flow.
The well does continue to clean up, and Beacon is hopeful that the mud is slowly recovered and the well builds to full potential, however a sand jetting operation is arranged for late January in order boost near term production. Sand jetting is a standard well stimulation technology used in conventional reservoirs, whereby high- pressure water and sand is jetted into the reservoir. The pressures are such that the process creates bores several metres in length, bypassing and/or clearing near-wellbore damage. Beacon has been able to analyse downhole conditions and has estimated that the damaged zone amounts to less than three metres. Furthermore, the relatively soft reservoir in this location should respond well to jetting, so Beacon is confident that there will be a good response to the operations. The uncertainty in our minds will be whether the immediate response is an additional 100 bopd, 300 bopd, or 500 bopd. With operations costing under €500k, the payback under each scenario makes the operation commercially viable. Even-so, at today’s unstimulated rate of 40 bopd the field is commercial on an ongoing basis, with revenues exceeding field operating costs. To date over 1,600 bbls of oil has
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