IOG plc has solved the restriction in the Blythe H2 development well and paused appraisal drilling at the Saturn Banks project to maximise production and near-term cash flow.
OPERATING EFFICIENCY
Over the weekend, the company verified the downhole blockage in the gas well at the expected depth and fully opened the valve.
Following the change in downhole pressure, the well was handed back to the operations team in the early hours of 25 June and subsequently flowed at a maximum stabilised rate of 41.9 mmscf/d.
IOG said that production was initially set at 20 mmscf/d and would be steadily increased to full rate over the coming week as the Saturn Banks pipeline system is further dewatered.
“The plan remains to produce from H2 only over the next few months; once water levels have re-equilibrated at the H1 location, periodic production is planned from H1 at lower rates to minimise water production.”
Chief executive officer Rupert Newall added that Blythe’s operating efficiency had increased from 59% in 2022 to 93% over the first half of 2023 to date.
KELHAM & GODDARD
The company and its joint venture partner CalEnergy has had a drilling contract with the Shelf Drilling Perseverance (SDP) jack-up rig since the Elgood well spudded in April 2021.
The JV had aimed to drill one of two planned appraisal wells at Kelham North/Central and Goddard, while the farm-out process for the latter continues.
IOG added that following the H2 well control event and gas market volatility, the company’s key priorities were to maximise production and rebuild its cash balances.
The SDP will now be released after completion of Blythe H2 operations while the JV continues to assess the best options to drill the two appraisal wells by 31 March 2024.