IOG, a UK gas and infrastructure operator Net Zero, has completed the isolation of three of the six stimulated zones and the drilling of the other two zones within the Southwark A2 well in the UK North Sea.
However, after being able to reduce water production, the company has not seen an increase in stabilized gas rates, which were limited to 2.5 mmscf/day. According to the company, these rates do not justify connecting the well for production.
Looking ahead, the company has decided to suspend the A2 well and evaluate the feasibility of cycled production and alternative long-term repair strategies. A joint venture decision is expected shortly on whether to resume the Southwark A1 well directly as planned or prioritize the Blythe H2 well (subject to regulatory approvals), which would allow valuable time to incorporate the A2 learnings to the A1 completion plan.
As previously stated, Blythe H2 aims to increase production rates, increase reserve recovery and limit water production, which would ease onshore water handling requirements. Under the existing rig contract, including price extension options, the drilling program includes the two appraisal wells at Goddard and Kelham North/Central,
“The objectives of the A2 repair were to increase the gas rate through additional drilling and to reduce water production by isolating certain areas. Although water rates were significantly reduced, drilling has not provided the expected gas rate improvement. The data acquired from A2 will be critical to our re-evaluation of the A1 completion plan. Going forward, a key area of focus will be to assess the feasibility of hydraulic stimulation in reservoirs with low headroom above free water,” commented Dougie Scott, COO of IOG.
“We are clearly very disappointed with the outcome of Southwark A2, which represents a very significant departure from our plans and expectations. We are already working hard to incorporate the data and learnings from A2 into the A1 well plan and will assess the implications for other similar assets in our portfolio,” says Rupert Newall, CEO of IOG.
“As we demobilize the well test equipment, we are evaluating next steps with our joint venture partner. Recent engineering and procurement work gives us the option to accelerate Blythe H2, which is a major well for IOG. If successful, it would increase production and cash flow in the short term, as well as significantly reduce water production and associated costs,” he added.
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