2nd Jul 2014 08:24
LONDON (Alliance News) - Northern Petroleum PLC Wednesday said the workover of its 16-19 well at the Virgo redevelopment project in Canada has been completed ahead of schedule but its 14-22 well has been shut-in until later in the summer.
The oil and gas exploration and development company said the workover plan, which was originally planned for later in the summer, was successfully undertaken due to good weather leading to sustained production since the middle of June.
The company said the 16-19 well is now producing at between 100 and 140 barrels of oil per day on a restricted flow rate to maximise the cumulative long-term oil recovery from the site.
However, its re-entry well 14-22, which was producing at a restricted rate of 50 barrels of oil per day, has been temporarily suspended since May to conserve its gas levels for future output.
Later in the summer, Northern Petroleum plans to tie-in the 14-22 well to the local gas gathering system and put it back onto production at a steady rate, providing what it called a 'small economic contribution.'
The company said its third well 13-33 was on production throughout May and June at an average daily production rate of 125 barrels of oil per day, slightly lower than its originally planned 150 barrels per day in order to again maximise recovery and performance.
As a result, Northern Petroleum said its combined field production is currently running at roughly 200 barrels of oil per day, with permitting currently underway for its summer drilling programme, which is forecast to start in August.
"Production data and well performance continues to support our expectations of achieving an average initial production rate of 100 bopd per well across the field," Chief Executive Keith Bush said in a statement. "A successful summer drilling campaign will reinforce these assumptions further and de-risk our initial objective of producing five million barrels from the field on primary recovery."
Northern Petroleum shares were up 4.0% to 26.25 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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