15th Aug 2019 11:59
(Alliance News) - Upstream oil and gas firm Phoenix Global Resources PLC on Thursday reported initial oil production from muti-fractured wells at the Mata Mora concession in the Neuquen province of Argentina.
Mata Mora is a concession area covering 55,000 acres located in the South Neuquina basin. The company holds a 90% operated working interest in the concession with the remaining 10% held by Gas y Petroleo del Neuquen, the Neuquen province-owned oil and gas company.
In July, a total of 34,273 barrels of oil were produced from two Mata Mora lateral wells. The well were drilled in June.
"The wells were drilled from a single pad at a spacing of approximately 250 metres, with each well having a lateral section of more than 2,000 metres", the company said.
In early testing, each well has seen production rates of about 1,000 barrels of oil per day, with reservoir pressure over 9,900 pounds per square inch.
"The results of our first two long lateral wells completed in the Mata Mora are encouraging in terms of the development potential of the block. The wells remain in an early stage of the flowback process with about 8% of the frac water recovered to date," said Chief Operating Officer Javier Vallesi.
Phoenix said crude production from both wells continues to ramp up as oil displaces water during the flowback process.
Vallesi added: "The flowback phase has been extended to obtain additional well performance data and to allow further optimisation of the wells. We expect to be able to update the market in relation to the calculated initial production rates and performance against planned type curves during the fourth quarter."
The two wells satisfy the company's initial licence commitment, Phoenix said.
When testing is completed, Phoenix intends to apply to the Neuquen provincial government for an exploitation licence, which will include a commitment for a pilot development programme for Mata Mora.
Shares in Phoenix Global Resources were 0.6% higher in London on Thursday at 16.50 pence each.
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