Reabold Resources plc said that reservoir damage to the Kirkham Abbey formation was preventing further significant oil flows at West Newton in East Yorkshire.
SIGNIFICANT
The upstream oil and gas investor added that the West Newton B-1Z (WNB-1Z) well had been suspended with gauges measuring pressure build-up.
Testing of the WNB-1Z well to date has yielded significant information with gas and liquid hydrocarbons recovered to surface.
This was consistent with information gathered from the A site wells and further evidence that the JV had a substantial hydrocarbon column and resource in place, the company added.
RESERVOIR DAMAGE
“However, the Kirkham Abbey reservoir appears to be sensitive to the drilling and completion fluids,” read a statement from Reabold.
“We see clear signs of reservoir damage in near wellbore areas.
“This is probably preventing more significant flow at this time.
“Testing to date has not yet returned all the completion fluids injected into the formation and a measurable flow of hydrocarbons has not yet been achieved.
“The B-1Z well will therefore be suspended with pressure gauges monitoring pressure build up in the well bore, with a view to further testing following the results at the A-2 well.”
Reabold added that the testing equipment would be moved to the West Newton A site, where the JV would re-start the previously interrupted test at the A-2 well.
UNIQUE
“Testing at West Newton continues to provide valuable data to inform how to best develop this extremely significant oil and gas resource,” said co-chief executive Stephen Williams.
“Suspected formation damage at the B-1Z well also forms a key input into the development methodology for the West Newton field.
“We are fortunate in being able to progress the A-2 test whilst we undergo the pressure build up at B-1Z, and look forward to continuing to better understand how to optimally exploit this unique UK oil and gas resource.”
VALUE
Union Jack excutive chairman David Bramhill said the company was highly encouraged by the initial results.
“Our enthusiasm is borne out by the return of hydrocarbons to surface at this ongoing and early stage testing of the Kirkham Abbey formation, natural fracturing and significant fluid injection rates of 5.7 barrels per minute (8,208 barrels per day).
“The joint venture partners are resolved to unlocking West Newton’s inherent value and generating a successful return on capital invested.”
JOINT VENTURE
The joint venture comprises Reabold Resources with 56% economic interest via its 59% share in operator Rathlin Energy, which has a 66.67% in PEDL183.
In addition, Reabold has a 16.665% direct licence interest in PEDL183, and Union Jack Oil plc also owns a 16.665% economic interest.
The licence contains the WNA-1, WNA-2 and WNB-1Z hydrocarbon discoveries.