27th Aug 2014 11:02
LONDON (Alliance News) - Global Energy Development PLC Wednesday said it has decided to temporarily shut in the well at the Simiti formation project because the surging process has not proven effective in breaking down the emulsion or flow barrier within the wellbore.
In an update on the operations of the Catalina #1 Simiti formation in its Bolivar association contract in the northern section of the Magdalena Valley in Colombia, South America, the Latin America focused petroleum exploration, development and production company said it is "advantageous" to pause ongoing capital costs. It expects that formation oil will naturally move back towards the wellbore and the emulsion will organically breakdown while formation and wellbore pressures equalise.
On July 31 the company had reported low rates of fluid recovery from the formation due to the presence of an emulsion substantially blocking most reservoir fluids from reaching the wellbore and detailed a working plan to remove these blockages. On Wednesday it said that although surging efforts over the past few weeks have continued to recover stimulation water injected into the well during the fracturing process, recovery is not at a "satisfactory" rate.
In the meantime, the Global Energy will begin to plan for its next workover project in the Bolivar Contract area. It said it will use information gathered from the Simiti project, specifically the presence of significant natural fracturing, and does not expect to utilise high-pressure and high-volume fracturing in its next project.
"We have learned that the Simiti formation has massive natural fracturing. The Simiti formation absorbed the large amounts of stimulation fluid pumped into it during the fracturing process," Managing Director Steve Voss said in a statement.
"Allowing nature to run its course on the emulsion within this well for a few months is beneficial while we focus on our next Bolivar project. We remain optimistic about the existing oil reserves within the Simiti formation. If we are not required to utilise hydraulic fracturing in future wells the project costs will be lessened and the operations simplified," Voss added.
Global Energy Development shares were Wednesday quoted down 8.9% at 46.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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