20th Aug 2019 11:38
(Alliance News) - Polo Resources Ltd noted Tuesday an announcement by its 8.8% investee, Malaysian oil & gas firm Hibiscus Petroleum Bhd, that it has completed the St Joseph infill drilling campaign.
Shares in Polo Resources, which mainly invests in mining companies, were down 9.0% at 3.02 pence on Tuesday.
The campaign is part of the 2011 North Sabah enhanced oil recovery production sharing contract, offshore Malaysia, and entails the drilling and completion of three infill oil producers, using triple splitter wellheads on the St Joseph Jacket-A platform.
The first well, SJ-105A was brought online in mid-July, achieving a stabilised production flowrate of above 1,000 barrels per day.
In late July, the second well was completed with a flowrate of 1,300 barrels per day, and the final well was finished at the start of August, with a flowrate over 900 barrels.
The combined increase in production of 3,200 barrels has exceeded pre-drill expectations of 2,600 barrels per day, and the project is expected to add life of field gross reserves of 2.8 million stock tank barrels.
Additional process debottlenecking activities are now underway to reduce the backpressure on these new infill wells, which will in turn further improve the stablised production flowrates of the newly drilled wells.
"Our investment in the seven well drilling campaign is consistent with our objective to enhance production from the North Sabah asset and demonstrates that Malaysia is an integral part of our long-term business strategy. I am extremely pleased with the outcome of the first three infill wells drilled in the St Joseph oil field," said Pascal Hos, chief executive officer of Hibiscus.
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