RE: Amigo19 Apr 2021 23:31
From a previous update by HUR:
"Building on the initial results of the technical review announced in September 2020, a remapping exercise has been completed to more accurately define the complex reservoir horizons now recognised in Lancaster. The reservoir simulation model has also been extensively rebuilt, utilising this remapping work, recognising the contribution from sandstones onlapping fractured basement, and using additional historical and regional data. This simulation model has been used to assess various near-term development options which are currently under technical and commercial review."
^ This could be why ERC's estimates lower?
"While no firm decisions have been taken, the Company has focussed on the location, operations planning and execution in 2021 of a new production well in the central "attic" high of the Lancaster field, by re-entering and side-tracking the existing 205/21a-7z well. This could add meaningfully to the production capacity from the existing 205/21a-6 well, accelerate production of existing reserves, and, depending on oil price, materially improve near-term cashflow generation. Development costs are currently estimated at c.$60 million. Subject to a sanction decision early in the first quarter of 2021 and securing a suitable rig and equipment, first production from this well should be possible by late 2021."
^ This is the sidetrack targetting victory at then "central attic"
"Implementing a water injection programme is important to provide pressure support generally, but also to sweep oil towards the producing wells in the centre of the field, which could materially improve recovery from Lancaster. Preliminary evaluation has identified that injection into the northwest of the field could provide the greatest benefit. Ongoing assessment of this water injection option is focussed on finalising the well location, subsurface and FPSO modifications, operations planning and execution in 2022. Costs are currently estimated at c.$75 million."
^ When they say "sweep", they mean displace the oil at depths of victory sandstone with water, and hence moving oil towards the upper "central attic" of the victory layer where the wells are.