Corcel plc said that sustained gas production at 20,000m³ a day had been confirmed from the EI-1 well in the IRAI field in the state of Bahia, Brazil.
DECISION
Operator Petroborn Óleo e Gás S.A. re-entered the well to test the gas zone at 417m and is currently connecting it to existing gas production infrastructure at IRAI.
Part of a two-well workover programme, EI-1 is expected to be brought online within the next seven days.
The production figure, equivalent to 20 barrels of oil equivalent per day or 706 thousand standard cubic feet, is “aligning with historical production rates” from March to May 2022.
The company also noted that after producing a total of 19.8MMm3 of gas, or 120,000 barrels of oil equivalent, the well was previously shut-in for operational and commercial reasons.
Corcel has yet to decide whether to exercise its option to acquire a 20% interest in IRAI with a right of first refusal over the remaining 80% and 100% of the adjacent TUC-T-172 block.
Chief commercial and strategy officer Geraldine Geraldo added that EI-1 had met the company’s expectations.
“Our focus now turns to further evaluating the IRAI opportunity through the second workover well and other ongoing studies.
“Should we decide to exercise the option following the results of the next workover and a final investment decision, this will mark a significant milestone for Corcel: revenue from gas sales.”