Horizon Oil drilling update
Posted: 27 April 2006
Bayou Choctaw Field, USA
Horizon Oil advises that as 27 April 2006 the Australian Mineral Interests No. 1 well has been successfully completed for production from the Cib Haz formation.
A production test carried out over a 12.5 hour period has confirmed the expected good flow characteristics of the formation. The well tested at a rate of 3.1 mmcfd of rich gas and 60 bopd, with negligible water, through a 16/64 inch choke.
The rate was limited by the size of the test equipment. The oil rate increased over the test period and is expected to continue to do so once the well is on production. Wellhead pressure exceeded 1800 psi, which augurs well for future deliverability.
A tie line is currently being laid to the gas transmission system 600 – 700 feet from the well location.
It is anticipated that the well be online for production within about 2 weeks.
A premium price is anticipated for the gas because of its BTU content and the oil will be priced at roughly WTI price at the lease.
A stabilised production rate and indication of reserves potential will be ascertained after the well is on production. It is possible that the reservoir is in virgin pressure. Two further zones remain in the wellbore behind casing for completion at a later date.
Because of the poor performance of the rig used to drill the AMI-1, the decision was taken to release it and 3 alternative rigs are now being inspected. It is hoped that the drilling program will re-commence by mid-July.
The next two exploitation locations are on the west side of the Bayou Choctaw salt dome. In addition two further wells may be drilled as follow-ups to the AMI-1.
A well to access the deeper targets not reached in the AMI-1 will probably be drilled vertically and slightly down dip away from the salt-induced pressures seen in this well.
There is also potential for an additional location up-dip of the AMI-1 at the Cib Haz level.
The AMI-1 well is the first of an initial 3 well exploitation program targeting zones updip of existing production around the Bayou Choctaw salt dome.
Horizon Oil has a 14.0% interest in the Australian Mineral Interest No. 1 and will have a 19.8% interest in the following two wells.
Its partners are CLK Energy, Inc. (operator) and a subsidiary of ASX-listed Icon Energy Limited (ASX:ICN).
Wei 6-12 South Well, Beibu Gulf, Offshore China
The Haiyang 931 jack-up drilling rig has commenced drilling the Wei 6-12 South exploration well on Block 22/12, in which Horizon Oil has a 30% interest. The well is located in about 30 m of water about 3 km southwest of the 2002 oil discovery, Wei 6-12-1 (see map).
At 0600 hrs on 27 April 2006 the well was drilling ahead in 12.25 inch hole at a depth of 141 m. The well is expected to take about 21 days to drill to a total depth of 2,530 m.
The Wei 6-12 South prospect has mean unrisked potential of 19 mmbo and is one of a cluster of prospects surrounding the Wei 6-12-1 oil discovery well, with combined potential of 40 – 50 mmbo (see map). These prospects are well supported by seismic attribute anomalies, which have been calibrated on the nearby Wei 12-1 producing field.
Posted by Richard Price, Editor, EnergyME.com
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