AWE: Excellent flow test results from AAL G Sand
Tuesday, June 28 2016 - 03:18 AM WIB
ASX-listed AWE Limited said that drill stem test (DST) has been conducted on the G Sand reservoir at the AAL-4XST1 appraisal well in Northwest Natuna PSC, located offshore Indonesia in the Natuna Sea, achieving an averaged stabilized flow rate of 828 barrels/day (bopd) on a 64/64 inch choke over a 9 hour period.
The company said in a statement Tuesday that the results exceeded pre-drill expectations and are 58 percent higher than the previous G-sand tests at AAL-3X (525 bopd).
?The DST was successfully conducted over a 3.5m perforated interval in the sidetrack well bore and was assisted by an electrical submersible pump (ESP) which is standard procedure in heavy oil fields due to the viscosity of the oil,? the statement said.
Bulk oil samples were recovered for further testing but wellsite measurements indicate the G-sand oil to have a specific gravity of 10.7 API at 60? F, consistent with previous samples from AAL-3X. Produced gas and water were at rates too low to measure.
AWE?s preliminary analysis of the wireline log data indicates an 8m oil column in the G-Sand and excellent quality reservoir, the best encountered in the field to date. No oil-water-contact was intersected in the well.
The company said operations are now underway to commence a second DST test in the main AAL field K-sand reservoir.
AWE Managing Director and CEO, David Biggs, said: ?The better than expected flow rates achieved and excellent reservoir quality underline the significant potential of the AAL oil project.
The positive results of the G-sand DST, together with a forecast lower cost environment and an improving long-term outlook for the oil price are all encouraging in respect of a decision to develop the AAL field.?
The AAL-4X well has been drilled in water depth of approximately 72m using the Raniworo jack-up drilling rig and is forecast to be completed within the Operator?s budget.
The Northwest Natuna PSC is located offshore Indonesia in the Natuna Sea and includes the Ande Ande Lumut (AAL) oil project. The AAL project comprises the K Sand reservoir (101 million barrels gross recoverable oil, net 24.3 million barrels of 2P Reserves and 1.7 million barrels 2C Contingent Resources to AWE) and the underlying G Sand reservoir.
The AAL-4X appraisal well?s primary target is the G Sand reservoir, which is estimated to contain 289 million barrels gross oil in place with 36 million barrels gross recoverable oil (net 8.4 million barrels 2C Contingent Resources to AWE). Appraisal of the G Sand will facilitate the preparation of a Plan of Development for this resource, which could be developed in conjunction with the already approved K Sand development.
The Joint Venture partners in the Northwest Natuna PSC are: AWE Limited (via subsidiaries) with 50 percent interest, and Santos Limited (operator) holds the balance.
Editing by Reiner Simanjuntak