21st Oct 2014 07:23
LONDON (Alliance News) - Ophir Energy PLC Tuesday said it is focusing on negotiating fiscal terms with the government and seeking a company to operate its project at Block R in Guinea before the end of the year, after successfully testing its Fortuna-2 well.
The company has successfully completed a drill stem test on the Fortuna-2 well, in which it holds and 80% stake, with GEPetrol holding the remaining 20%.
A drill stem test is a procedure for isolating and testing the pressure, permeability and productive capacity of a geological formation during the drilling of a well.
The drill stem test resulted in a sustained flowrate of 60 million standard cubic feet per day. Based on the operating conditions at its floating liquefied natural gas facility, the well is expected to deliver a production rate of 180 million standard cubic feet per day, it said in a statement.
"The excellent flow rate, at minimal drawdown, is a strong indication that the number of development wells required for the Fortuna reservoir will be reduced from the seven initially assumed in scoping work, thereby improving development economics," said Ophir.
The Fortuna field has an estimated 1.3 trillion cubic feet of recoverable resources and will form the first phase of the natural gas facility's development, it said.
The next milestones for the Block R FLNG development will be agreeing fiscal terms for the supply of gas and the selection of the consortium to build, own and operate the mid-stream project. Both of these are anticipated by end 2014, said Ophir.
"We now turn to completing the negotiation of gas terms with the government and to the award of the contract for the mid-stream consortium; both of which are anticipated in the fourth quarter of 2014," said Chief executive Nick Cooper.
Ophir shares were up 1.8% to 193.40 pence per share Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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